SEC Commissioner Hester Peirce said the vague language in the regulator’s new proposal to modernize the definition of the stock market could pose a threat to DeFi.
SEC Chairman Gary Gensler stated that it is important to reframe the rules to keep up with the “increasingly electronic” systems that trade government securities:
“Since Congress introduced the stock market definition, many platforms have undergone changes over the decades. They are becoming more and more electronic”
While the SEC’s proposal does not mention cryptoassets, Peirce points out that this proposal could be used to expand oversight on crypto platforms:
“The proposal could potentially reach more trading mechanisms, including DeFi protocols”
Gensler stated that DeFi protocols tend to centralize and urged the entrepreneurs behind these platforms to register with the SEC.
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