The new DEFI platform enters the market! Earn passively - token sale 0.25 $ I'm going in!

Good decentralization to protect Defi

By
Redakcja
-
3 min reading

Hester Pierce of the U.S Securities and Exchange Commission also known as ‘Crypto mom’, has mentioned the precautions of flourishing “shadow-centralization” within the decentralized finance (DeFi) sector. Chris Blec the founder of DeFIWatch stated that decentralized organizations and DeFi are latest ideas for regulators and also, “having a peer-to-peer system that doesn’t have central intermediaries is very different from what we’re normally dealing with.”

Hester Pierce of the U.S Securities and Exchange Commission also known as ‘Crypto mom’, has mentioned the precautions of flourishing “shadow-centralization” within the decentralized finance (DeFi) sector. Chris Blec the founder of DeFIWatch stated that decentralized organizations and DeFi are latest ideas for regulators and also, “having a peer-to-peer system that doesn’t have central intermediaries is very different from what we’re normally dealing with.” 

“If you want to be decentralized, you really need to be decentralized, and that is going to then put you in a different category from the perspective of regulators because that’s just not something that we’ve dealt with before. If Regulators can find a centralized part or group of people that they can grab hold of, they will grab hold of them. So, I think it’s just good to be cautious about how you build things because, down the road, it could have regulatory implications,” she added. 

Blec asked pierce about the best method for building decentralized protocols whether or not the founders should aim to reach the same level of decentralization as Bitcoin, or to start to build “really carefully and then moving towards regulation” to ignore running against the law. According to the commissioner the present regulations have been created in a way so “any entity or person that is involved in the financial industry is probably going to come under at least one regulatory framework.” Pierce tried to coerce the DeFi founders who thinks they do not come under the substructure of the already living legislation to work on regulators and “figure out if there’s an alternative way to comply.” 

“If you want to make a case that you’re something different than the CeFi or TradFi system, then you have to show that you’re doing something radically different, which from my perspective, requires decentralization. If the trust is really coming from the code, that’s something very different than if the trust is coming from one company or a group of people,” she added. The commissioner also pointed out the generality of “shadow-centralization” in the DeFi sector. This could end up with the protocol being handled by centralized control even after wearing the banner of decentralization in its marketing. 

“That’s a part of the reason our financial system is so concentrated,” she said. “Because the only people who can afford to wait to get approvals are people who have a lot of money already and who can have really good lawyers already.” According to Pierce Satoshi Nakamoto’s experience would look like if they engaged the SEC before launching, “It’s 2021, it would be very likely that Satoshi would still be trying to get a no-action letter.” 

Currency Exchange rate Buy cryptocurrency

The new DEFI platform enters the market! Earn passively - token sale 0.25 $

Dear customer,

We use cookies to provide our services correctly and safely. Cookies are small text-based data sets that shall be saved on the device you are using in connection with the use of this instnat website. Cookies are created in order to ensure proper functioning of thes instant website. By clicking the button "I accept and go to the website", you implicitly agree to creation of the cookies on your computer and to deploy automatic tracking and data collection and processing on behalf of the Lushup Holdings FZ LEE. Click the above-captioned button is also tantamount to accepting website's privacy policy. Closing the notification by means of "X" is unequivocally connected with your consent. If you do not agree to any of the above, please discontinue using our Website.

“Cookies” shall make an identification of the software used by you and to customization of this instant website to your needs. Cookies contain the name of the domain from which they origin, duration of period of their storage on your computer and an assigned value.

Third party cookies:
We also use third-party cookies for the following purposes:

  • creating statistics - helping to understand the way Users use the Website, which allows to improve its structure and content with use of the analytical tools
  • defining a user profile - in order to display custom-tailored content in advertising networks.

External entities that might be source of any third-party cookies on this instant Website are as follows:

Using a settings of your web browser or by using pre-set configuration tools available in our service you can independently and at any time change the settings concerning your use of the “cookies”, specifying the conditionsof their storage and how your device is creating and downloading them. These settings can be changed to block the automatic handling of cookies in the settings of your web browser or inform about their placement on your device each time.

Detailed information about the options related to use of “cookies” is available in the settings of your software (web browser).

Service privacy policy

This instant document lays out the principles of the Privacy Policy on the tokeneo.com/news/pl website (hereinafter referred to as the "Website" or "Service"). The administrator of the Website is Lushup Holdings FZ LEE, Fujairah - Creative Tower, P.O.Box 4422 Fujairah, United Arabs Emirates.

The full document to read the Tokeneo privacy policy is available in this document.

Advanced settings can be changed in your browser.