TrendsWide
Contact US
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
  • Home
  • Trending
  • Health
  • Life Style
  • NBA
  • Reviews
No Result
View All Result
TrendsWide
No Result
View All Result
Home Economie

SEC commissioner says DeFi must address transparency and anonymity

by souhaib
November 10, 2021
in Economie
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT


Caroline Crenshaw, the commissioner of the US Securities Exchange Commission (SEC), has come out to address issues affecting the decentralized finance (DeFi) sector. Crenshaw aired her sentiments in an opinion piece on November 9, noting that the industry presents numerous opportunities. She also outlined the dangers of players in the industry failing to adhere to a protective regulatory framework.

Crenshaw’s article, dubbed DeFi Risks, Regulations, and Opportunities, was part of the first issue of The International Journal of Blockchain Law. In the publication, the SEC commissioner noted that it is imperative for the DeFi community to address the lack of transparency and pseudonymity to remain compliant with SEC rules.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

According to her, the DeFi sector is similar to the traditional finance system in many ways. For instance, some projects do not invest in compliance or adequate internal controls unless required. Additionally, some individuals will victimize others when the potential financial rewards are high.

On top of this, the absence of disclosure requirements and information asymmetries in both sectors puts affluent investors and insiders at an advantage at the expense of the smallest investors and those with the least access to information. To this end, Crenshaw claims it is not enough for DeFi projects to merely inform investors that investing in the sector comes with risks.

Regulation will help DeFi flourish

Per Crenshaw, the regulation would be good for the DeFi sector, seeing as they have helped US capital markets thrive. Urging the DeFi community to embrace regulation with an open mind, the SEC commissioner said securities laws do not only seek to burden innovators with obligations. Instead, address the above challenges, thus fostering more adoption.

Citing the shortcomings of the current DeFi sector, she said,

But, in the brave new DeFi world, to date there has not been broad adoption of regulatory frameworks that deliver important protections in other markets.

To this end, Crenshaw argues that lack of transparency often results in a two-tier market that sees professional investors and insiders get massive returns while small investors assume more risks and get poor pricing.

As for pseudonymity, she noted that DeFi markets are prone to manipulation, which is difficult to detect because transactions run on the blockchain. According to her, it becomes difficult to track minimize manipulation due to using bots and collusive trading. While the DeFi space touts pseudonymity as a feature, she believes investors prioritize making money over it.

To help address these issues, Crenshaw suggests that DeFi projects should engage in open discussions with the SEC.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,

eToro






10/10

67% of retail CFD accounts lose money



Source link

You might also like

‘momentum is continuing into 2022’

Astra Space stock closed down 20% on Monday: here’s why

Ripple, Dogecoin, Litecoin price forecast for February 2022

Share this:

  • Twitter
  • Facebook
  • More
  • Pinterest
  • Telegram
  • Email
Share30Tweet19
Previous Post

Livepeer (LPT) price prediction after the current correction 2021

Next Post

The Sao Paulo Stock Exchange chains second consecutive rise by gaining 0.41% By EFE

souhaib

Recommended For You

‘momentum is continuing into 2022’

by souhaib
February 7, 2022
0

Shares of Chegg Inc (NYSE: CHGG) are up 10% in extended trading on Monday after the student services company said it performed better-than-expected in Q4, despite COVID-19 uncertainty....

Read more

Astra Space stock closed down 20% on Monday: here’s why

by souhaib
February 7, 2022
0

Read more

Ripple, Dogecoin, Litecoin price forecast for February 2022

by souhaib
February 7, 2022
0

The cryptocurrency market is advancing this Monday, and this situation also supports the price of Ripple XRP/USD, Dogecoin DOGE/USD, and Litecoin LTC/USD. Bitcoin is trading above the $44,000...

Read more

Analyst: ‘Apple would be forced into it if Amazon goes after Peloton’

by souhaib
February 7, 2022
0

Read more

Should I buy Uber shares in February 2022?

by souhaib
February 7, 2022
0

Uber Technologies, Inc. (NYSE: UBER) will announce fourth-quarter earnings results this Wednesday, February 09, after the market closes. Uber shares have weakened more than 10% since the beginning...

Read more
Next Post

The Sao Paulo Stock Exchange chains second consecutive rise by gaining 0.41% By EFE

No Result
View All Result

Recent Posts

  • They evoke Carlos Fuentes “owner of the word” and “creator of our city”
  • Ha’aretz transmits the latest Israeli account of the assassination of Shirin Abu Akleh.. Calls for a transparent investigation and the authority renews its refusal to hand over evidence to the occupation | Politics news
  • US turns to Mexico and Chile in the face of baby formula shortage
  • Speaker Nancy Pelosi Slams Supreme Court As ‘Dangerous To Freedoms In Our Country’
  • NATO officials ‘confident’ on Swedish, Finnish membership bids despite Turkish reservations – POLITICO

Browse by Category

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Categories

  • Australia
  • Automotive
  • Business
  • Celebrity
  • Cryptocurrency
  • Deals
  • Economie
  • Education
  • Euro
  • Forex
  • Gaming
  • Health
  • Life Style
  • NBA
  • News
  • Reviews
  • Sports
  • Switzerland
  • Trending
  • U.S.
  • Uncategorized

Pages

  • Contact US
  • Newsletter
  • Privacy Policy
  • Terms & Conditions

© 2021 - TrendsWide

No Result
View All Result
  • Home
  • Contact US
  • Privacy Policy
  • Trending
  • U.S.
  • Economie
  • Deals
  • Reviews
  • Cryptocurrency
  • Health
  • Life Style
  • NBA

© 2021 - TrendsWide

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.