The annual meeting of the Securities Industry and Financial Markets Association (SIFMA) took place on October 24. The Chairman of the United States Securities and Exchange Commission (SEC) spoke during the meeting. Gary Gensler has once again attacked the crypto sector. He highlighted the alleged flaws of this ever-growing industry. Read the highlights of the SEC Chairman’s statements during the SIFMA annual meeting.
According to the president of the SEC, there is no decentralization!
Gary Gensler recently Explain that the exchanges are highly centralized. The Chairman of the SEC has declared that the finance has been centralized since antiquity. Even the Internet, whichhas democratized many forms of information, including in financeis also centralized. Gensler then added:We have even seen centralization in the crypto market, which was founded on the idea of decentralization“.
The SEC Chairman also thinks there is a “tendency for central intermediaries to benefit from scale, network effects and access to valuable data“. These remarks undoubtedly refer to exchanges such as Binance, Coinbase and FTX. Gensler considers all of these companies to be centralized and just accumulating profits for several years.
Consider cryptos as securities to better regulate them?
For the chairman of the SEC, it is necessary to classify cryptos in the securities category. This will allow exchanges to be regulated more rigorously, as with stockbrokers. But, if such a decision were made, retail traders would find it more difficult to carry out their activity.
That said, the SEC is determined to do everything to regulate the crypto sector. To this end, it counts examine exchange-listed tokens to verify that the rules in force are followed. In the event of an offer of non-registered securities, more or less strict measures will be taken.
Satoshi Nakamoto created bitcoin (BTC) to overcome the problems that plagued the finance industry due to the centralization of the banking system. We then witnessed the birth of cryptos which are said to be decentralized. However, critics of the new industry, like the chairman of the SEC, continually question its decentralizing properties.
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