Gary Gensler, Chairman of the US Securities and Exchange Commission, made important statements on DeFi during his conversation with former SEC chairman Jay Clayton at the Digital Asset Compliance and Market Integrity Summit held in New York.
Saying that new technologies cannot survive if they do not comply with the law, Gensler stated that DeFi technology can offer “true innovation”.
While the head of the SEC says he believes DeFi technology can be the source of innovation, he believes DeFi should also enter the regulatory framework.
“DeFi-related innovation may be real, but not permanent if they stay outside the regulatory framework.”
Saying that cryptocurrencies and Blockchain technology should be regulated from day one, the SEC chairman expressed his concerns about the centralization of DeFi technology.
In his speech, Gensler also called for crypto exchanges to register with the SEC.
“Some cryptocurrency exchanges may be overlooked for now. These companies also need to do business within the regulatory framework. Cryptocurrency exchanges are in a really important place for investor and consumer protection.
So come, talk to us and work with us. When appropriate, we use the enforcement tool. Work to register with the law.”
Refraining from answering questions about why a spotlight Bitcoin ETF was not approved during the chat, Gensler said that his lawyer advised him not to talk about pending issues.
*Not investment advice.