SEC Urges DeFi Platforms to Register

US Securities and Exchange Commission (SEC) chairman Gary Gensler urged DeFi platforms to register with the SEC.

Many DeFi projects are highly centralized in certain aspects as they are developed by a group of people who are interested in promoting their platforms, he said.

Speaking to The Wall Street Journal, Gensler said that while DeFi projects are designed for standalone platforms that operate without centralized management, many are developed and controlled by a centralized team interested in promoting their platforms.

He added that there is still a group of entrepreneurs writing software that is similar to open source software, but with governance and fees.

In an August 20 interview with Fox Business, Gensler said such DeFi projects are centralized enough to be subject to regulation. He urged DeFi projects to register with the SEC.

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