The chairman of the US SEC, Gary Gensler, has declared that DeFi is highly centralized in certain regards and has asked those who work in the sector to register with the SEC.
He said that the decentralized notions that come with the term DeFi were “a bit of a misnomer,” adding “these platforms facilitate something that might be decentralized in some aspects but highly centralized in other aspects.”
DeFi projects are created to be autonomous platforms that are meant to work without needing a centralized authority, but Gensler claims that many are actually created and controlled by a centralized team that is stimulated to promote the platform.
“There’s still a core group of folks that are not only writing the software, like the open-source software, but they often have governance and fees. There’s some incentive structure for those promoters and sponsors in the middle of this.”
“These so-called decentralized finance platforms actually have a lot of centralization. There’s a group of entrepreneurs that are running these platforms. They should come in and to that extent work with us and get registered.”