The new proposal could give the SEC far-reaching powers to regulate crypto and defi platforms- regulation

A commissioner of the US Securities and Exchange Commission (SEC) has expressed concerns about a new proposal that could give the securities supervisory authority new powers to regulate cryptocurrency platforms and decentralized financial protocols (Defi).

A new SEC proposal could harm the crypto industry, warns Commissioner Peirce

Hester Peirce, Commissioner of the US Securities and Exchange Commission (SEC), has warned that a new proposal could be devastating for the crypto industry, Bloomberg reported on Tuesday. Peirce is a Pro-Bitcoin representative who is also known as a "crypto mother" in the crypto community.

The SEC proposed changes last week to regulate "essential platforms for treasury markets" in the ATS regulation. The 654-page proposal aims to "expand the regulation ATS for alternative trading systems (ATS) that act with state documents, NMS [National Market System] shares and other securities." It also suggests "expanding the regulation SCI to ATS that act with state documents" and "to change the SEC rule in relation to the definition of a 'stock exchange' to close a regulatory gap".

Commissioner Peirce warned that the proposal crypto does not mention, but could give the official far -reaching new powers to test cryptocurrency platforms, including protocols for decentralized finances (defi). She told the publication:

The proposal contains a very extensive language that, together with the obvious interest of the chairman, indicates the regulation of all crypto things that it could be used to regulate crypto platforms.

The Pro-Bitcoin Commissioner emphasized that "the proposal could achieve more types of trade mechanisms, including potential defi protocols".

The security guard claims that the proposal should close a "regulatory gap" that was created by market participants, use the platforms that are not registered as stock exchanges or brokers in order to act all types of securities. The chairman of the SEC, Gary Gensler, said last week that this would "promote resistance and better access to the treasury market".

The proposal is now open to public comments. The SEC must carry out further vote before the regulations become final.

Gensler has loudly commented on have to regulate cryptocurrency and defi platforms. In December he added to his a crypto consultant Management forces . In January, the SEC chairman said: "If the trading platforms do not come to the regulated area, this would be another year in which the public is vulnerable."

Do you think that the Sec should have more powers to regulate crypto trading platforms and defi protocols? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

Bedy verification : Shutterstock, Pixabay, WikiCommons