SEC Plans to Regulate DeFi Protocols with US Securities Laws

The SEC, headed by Gary Gensler, plans to regulate DeFi protocols with US securities laws and introduce a licensing mechanism for cryptocurrency platforms representing the decentralized finance (DeFi) market.

Gensler will present his department’s plans to increase the transparency of the digital currency market while speaking before the House Financial Services Committee on Tuesday.

He has asked for input from experts and the business community within the next 30 days, and has made it clear that “calling yourself a DeFi platform does not relieve you of your obligation to comply with securities laws.”