SEC Commissioner Caroline Crenshaw makes a recent publication “Statement on DeFi Risks, Regulations, and Opportunities”.
More so, this is on November 9, while advising DeFi platforms to contact them.
Furthermore, Caroline Crenshaw confirms that crypto is now part of the vernacular. Of course, whether on news, social media, entertainment, and in investment portfolios.
Also, while attempting to state the regulatory status of DeFi in the U.S. So, Caroline Crenshaw report says many DeFi products closely resemble those in the traditional financial marketplace.
More so, around August, the SEC announces partnernship with blockchain analytics firm AnChain.AI.
Of course, this is in order to monitor the DeFi space.
DeFi Risk and Reward According to Caroline Crenshaw Report
Notably, Caroline Crenshaw notes that while there are many warnings about the risks with DeFi. It also, still suffers structural limitations because of unregulations.
“DeFi participants’ current “buyer beware” approach is not an…”
“adequate foundation on which to build reimagined financial markets.”
More so, Caroline Crenshaw adds that the SEC is one of many departments with power over DeFi. Then, particularly securities, but no DeFi platform has registration with the regulator. Consequentially, this means participants has no protection by any legal framework that applies to traditional finance.
Lastly, Crenshaw urges DeFi operators to reach out to the Commission’s “FinHub”. Especially, for expert advice on where their position with the regulations.
Then, Caroline Crenshaw concludes,
“It is my understanding that FinHub has never refused a meeting,…”
“and their engagement is meaningful.”
