Gensler: Many DeFi projects cannot be called decentralized

by in DeFi News

Gensler

According to Gary Gensler, who heads the SEC, not all projects deployed in the DeFi market are decentralized. Many of them are completely centralized, the official stressed.

At the same time, Gensler acknowledged that most of the protocols are indeed decentralized. It is on them that the DeFi market is based.

The head of the SEC reiterated the need to regulate such an ecosystem to ensure the safety of investors and the transparency of transactions. According to him, the Securities and Exchange Commission already controls the work of the so-called peer-to-peer lending platforms. They are in many ways similar to DeFi projects, whose users are rewarded with tokens.

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Gary Gensler expressed the same point of view earlier. For example, in early August, he proposed regulating the work of decentralized crypto exchanges with the help of legislation in force concerning mutual investment funds.

The SEC will be able to control the DeFi market with the appropriate powers, Gensler said.