SEC Commissioner Says Supports DeFi’s Promise
Known as “Crypto Mom” in the cryptocurrency community, SEC Commissioner Hester Peirce is known as the most outspoken cryptocurrency advocate in the regulator.
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Peirce stated in his interview today that he supports many of the DeFi studies. Peirce also stated that he opposed the application-based approach, which he identified with his work on the ICO.
“I don’t want it to be a sanction-based approach. We need to clarify certain issues within DeFi, which is something we definitely need to do.
There are certain obvious things. If you are a truly decentralized platform, then probably the securities laws will apply to you as well.”
Securities laws have a complex relationship with cryptocurrencies, as U.S. regulations have long stated that the presence of a third party controlling the value of an asset would suffice to designate that asset as a security. DeFi in general hopes to exclude third parties from exchanges between parties.
The SEC and other regulators find efforts to eliminate intermediaries worrying, as they consider it important to have intermediaries who can be prosecuted and report when necessary. In the DeFi case, the issue of who will be prosecuted is one of the regulator’s main concerns. Peirce, on the other hand, sees this issue positively.
“The elimination of middlemen can be quite helpful for financial stability. At the same time, it is extremely important to provide easy access to financial services under the same conditions. This is a positive development”