Gary Gensler reiterates the need for DeFi regulation The de | DeFI News & Alerts

Gary Gensler reiterates the need for DeFi regulation

The decentralized finance (DeFi) sector is one of the most innovative, but that does not exempt it from regulation. SEC head Gary Gensler made this statement during the Yahoo Finance Summit.

"While this is all interesting, it reminds me a lot of when P2P lending emerged about 15 years ago. [...] It took us three, four, five years to get investors protected," the official noted.

The SEC chief added that financial stability and public safety concerns came first.

"There's a lot of trading going on there [in the DeFi sector], a lot of credit. And without protections, I'm afraid it's going to end badly," Gensler stressed.

Earlier, the Commission chairman called on the U.S. Congress to bring clarity to the regulation of the crypto industry and expressed the view that regulatory rules are necessary for digital assets to survive.