The U.S. Securities and Exchange Commission’s (SEC) warning shot last week that decentralized finance (DeFi) could be thrown into its expanding definition of what makes a securities exchange is the latest move to formalize what Chairman Gary Gensler has been saying: Crypto belongs in the securities world and will be regulated that way.
The crypto industry had long pleaded for specific rules or guidance from the SEC that would give digital-assets businesses certainty about how to comply or properly steer clear of the agency’s jurisdiction. The agency’s decision to explicitly fold DeFi into its proposal for a new exchange definition further underlines that the crypto financial movement won’t get tailored regulations. On the contrary, the agency is making targeted adjustments to its rules to ensure crypto will be held to existing securities regulations.
Source: SEC Lays Its Cards on the Table With Assertion That DeFi Falls Under Securities Rules
