US Securities and Exchange Commission (SEC) Chairman Gary Gensler made several remarks on crypto regulation during a question-and-answer session at the 27th annual Financial Markets Conference organized by the Federal Reserve Bank of Atlanta yesterday. Gensler shared his thoughts on the SEC’s disputes with numerous crypto companies, including Coinbase, and emphasized that a false sense of decentralization prevails.
SEC Chairman’s Remarks on Crypto Regulations
Recently, the approach of financial regulators, especially the SEC, to crypto companies has become a major topic of public debate. While many well-known names in the crypto ecosystem criticized the regulators’ approach to companies, after the TerraUSD collapse and FTX bankruptcy, many regulators emphasized the need for a broader regulatory framework.
Meanwhile, tensions between crypto companies and financial regulators have continued to escalate. Binance, the world’s largest cryptocurrency exchange by trading volume, and Coinbase, the largest US-based cryptocurrency exchange, have also faced various investigations.
Participating in a question-and-answer session at the 27th annual Financial Markets Conference organized by the Federal Reserve Bank of Atlanta yesterday, US Securities and Exchange Commission (SEC) Chairman Gary Gensler evaluated these reactions from crypto companies to the SEC and made various statements regarding crypto regulations.
SEC Chairman Targets Crypto Companies
SEC Chairman Gary Gensler stated that the crypto ecosystem is currently dominated by a false narrative of decentralization and that business models are currently based on incompatibility. Stating that the current understanding of decentralization in the crypto ecosystem is wrong, Gensler argued that most “decentralized” platforms are actually centralized and increasingly centralized structures. Gensler also criticized the current understanding in the crypto ecosystem, stating that finance has tended to centralize for many years:
“We don’t yet know who Satoshi Nakamoto is, who he or they are. Although finance has tended to centralize since ancient times, it is a field built on some kind of concept to not use centralization.”
