Hester Peirce warns that Proposed SEC Reform of Securities Trading Platforms May Threat DeFi

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U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has warned that the agency’s plans to reform government securities trading could threaten decentralized finance (DeFi).

  • Affected by “Crypto Mom” because of its long-standing support for the industry, Peirce believes a new SEC 654-page plan designed to add oversight to trading government securities could also allow new powers to examine DeFi platforms.
  • La new rules proposed by the SEC are designed to force platforms not registered as exchanges that still deal with the trading of all types of securities to be registered as “communication protocol systems”.
  • “The proposal includes a very broad language, which, along with the chair’s apparent interest in regulating all cryptocurrencies, suggests it could be used to regulate cryptocurrencies,” Peirce said in an email statement. according to a Bloomberg report on Tuesday.
  • “The proposal could reach more types of trading mechanisms, including possibly DeFi protocols,” Peirce wrote.
  • SEC President Gary Gensler said earlier that DeFi is not immune to oversight by the market regulator, as projects that reward participants with incentives or digital tokens could enter territory subject to SEC regulation.

Read more: Professor Gensler Gets an F on Crypto

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