- SEC’s chairman Gary Gensler plans to adopt stricter regulations on cryptocurrency.
- Despite the tough stance, Gensler will pay attention to the Decentralized Finance (DeFi) sector.
- The SEC intends to reassess previous proposals and reevaluate the definition of cryptocurrency.
Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), has recently announced his intention to adopt a stricter stance on the cryptocurrency sector within the United States.
As per reports, the regulatory organization has also confirmed that Gensler has yet to make plans to leave his position at the regulatory body in the near future. Significantly, the SEC chair has stated that e will be paying attention to the Decentralized Finance (DeFi) space, considered the industry’s most intricate area.
In a recent announcement by the regulatory body on Friday evening, they declared their intention to take extra measures in reassessing the current and previous proposals of regulations overseeing cryptocurrency. Moreover, the SEC has expressed its plan to reevaluate the definition of cryptocurrency.
SEC and Treasury Crack Down on DeFi
The recent announcement by SEC Chairman Gary Gensler regarding the stricter regulations on cryptocurrency has yet to be received positively by everyone. SEC Commissioner Hester Peirce criticized the SEC’s actions, stating that it sends a message that the U.S. regulatory body is not interested in promoting innovation and competition in the financial markets. Instead, she believes that the SEC is focused on protecting incumbents.
The SEC discussed the inclusion of DeFi initiatives within their current regulations, and after the conversation, the regulatory body confirmed that these initiatives are indeed covered. This reaffirmation follows the United States Treasury Department’s recent warning on April 6th against using DeFi services in money laundering and terrorism funding.
To implement changes in the regulatory framework, the SEC proposed revisions that would require DeFi entities to register with the regulatory body. This proposed change is expected to be made available for public comment for a period of 30 days after its publication in the Federal Register. This allows interested parties to voice their opinions and provide feedback on the proposed changes.
These regulatory actions by the SEC and the Treasury Department are part of a more significant effort to mitigate the risks associated with the growing popularity of DeFi platforms.
By implementing these measures, the regulatory bodies hope to ensure the financial markets’ safety and stability. While protecting investors from fraudulent schemes and illegal activities such as money laundering and terrorism funding.
