SEC Commissioner wants DeFi projects to cooperate with regulators

SEC Commissioner wants DeFi projects to cooperate with regulators 2

Caroline Crenshaw said that Defi projects needed to bring transparency so that US regulators could bring better rules and regulations over the crypto DeFi industry.

The regulators of the United States, namely the Securities and Exchange Commission (SEC) & CFTC, are fully active against illicit activities with better rules and regulations to provide a better ecosystem for the US citizens. But here the Defi industry is causing big issues because Defi platforms are decentralized and many things are going on anonymously, so it is causing a problem for the US regulators to bring better rules and laws for Defi projects. 

On 9 November, Caroline Crenshaw- commissioner at SEC agency- speaking in the opinion piece, emphasized the risk that can occur if failing to embrace a protective regulatory framework on this crypto space. 

Caroline said that the Defi community needed to work in favour of the SEC agency and the Defi community needed to work on the issues that are a big concern against the laws and rules. In this way, regulators may bring a better regulatory framework. 

“In the brave new DeFi world, to date, there has not been broad adoption of regulatory frameworks that deliver important protections in other markets.”

 Caroline also asserted that there is a huge lack of transparency in the working system in the projects, where particular investors are making huge profits. These, in particular, are professionals and insiders.

“..contributes to a two-tier market in which professional investors and insiders reap outsized returns.”

She also said that the details of the data transactions related to the DeFi projects are open source and available in the public domain but still retail investors in the platform are not getting advantages over the insiders and professionals.

And further, she added: 

 “It is not reasonable to build a financial system that demands investors also be sophisticated interpreters of complex code.”

Read also: Huobi will stop giving crypto services to Singapore users

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