DeFi Needs Regulatory Clarity & Freedom - SEC Commissioner.
2021-02-24 | Big Bob
United States SEC [Securities and Exchange Commission] Commissioner Hester Peirce recently reveals that the regulators need to provide “legal clarity and freedom to experiment”
to permit DeFi [decentralized finance] to compete with
the existing economic system.
Within a recent
interview with
George Washington University Law School, at the "Regulating the Digital Economy" conference, Peirce described DeFi as "an
excellent test" for regulators
to manage in such
how that it empowers investors and
markets.
Peirce made
regards to "anti-Wall Street sentiment" evidenced in events
like the GameStop trading frenzy, which, she added, have "inspired some to
involve throwing the legacy
economic system out entirely" and replace it with DeFi.
Amid suspicions that financial markets
aren't working
for everybody, DeFi is "building
an alternative to the legacy centralized
financial system [CeFi]" with smart contracts replacing intermediaries,
consistent with Peirce.
Peirce concluded that DeFi would be a challenge for regulators but would also offer new tools to satisfy that challenge, adding that "The regulator's job is unchanged
albeit the stage
is about with more modern scenery."
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