U.S. Securities and Exchange Commission Chair Gary Gensler has warned that decentralized finance (DeFi) projects are not immune to oversight by the markets regulator.
- DeFi projects have features that make them look like the type of entities regulated by the SEC, Gensler said in an interview Wednesday with The Wall Street Journal.
- Despite being decentralized, with no central entity in charge, DeFi projects that reward participants with incentives or digital tokens could enter territory that is subject to SEC regulation, he said.
- “There’s still a core group of folks that are not only writing the software, like the open source software, but they often have governance and fees,” Gensler said. “There’s some incentive structure for those promoters and sponsors in the middle of this.”
Source: Coindesk
