10 Nov 202104:00

SEC Commissioner: DeFi must address transparency and pseudonymity

Commissioner Caroline Crenshaw wants DeFi projects to cooperate with the SEC in order to find solutions for compliance with existing regulations.

United States Securities and Exchange Commission Commissioner Caroline Crenshaw has highlighted the benefits of decentralized finance (DeFi) while warning of the dangers of failing to embrace a protective regulatory framework in a Tuesday opinion piece.

The article, “DeFi Risks, Regulations, and Opportunities,” is the first in the inaugural issue of “The International Journal of Blockchain Law.” In it, Crenshaw outlines her belief that the DeFi community must address issues with transparency and pseudonymity while coming into compliance with SEC rules:

“In the brave new DeFi world, to date there has not been broad adoption of regulatory frameworks that deliver important protections in other markets.”