Gary Gensler says SEC is closely monitoring DeFi
Securities and Exchange Commission chairman Gary Gensler said the DeFi space is not immune to regulatory action from the SEC. According to him, such decentralized financial projects may also be “targeted” by the relevant departments.
Gensler has already expressed his opinion about DeFi earlier, arguing that this financial space can be regarded as the sphere of selling unregistered securities. At the Aspen Security Forum, he said that thousands of tokens today operate in the status of “unregistered securities,” which, in the opinion of regulators, causes a lot of problems for the entire cryptocurrency industry.
In the last interview with the Wall Street Journal, the SEC chairman reiterated the importance of providing investors with reliable protection from fraud and financial investment manipulation. He also compared DeFi to P2P lending services regulated by the SEC.
Considering that DeFi is often the victim of various kinds of hacks, and their losses are estimated at tens and even hundreds of millions of dollars, it is difficult to at least partially disagree with the words of the head of the SEC.
CipherTrace forensic experts, who do detailed blockchain forensics, noted in their report that hacks in the DeFi sector grew 270% in 2021 alone. If we talk about more global growth rates from 2020, then the statistics will turn out to be disappointing.
Earlier in August, a hacker managed to steal more than $600 million from the Poly Network protocol team. These developers were lucky as the attacker soon returned the funds. But how many projects have had a hard time because hackers, using exploits, devastated the "treasury", leaving them alone with an angry crowd?