Thus far, the government of the United States has been at odds with the cryptocurrency market. However, several technical experts have pointed out that even if the government proceeds to ban crypto trading and the activity of the exchange markets, it will be impossible to stop this industry from developing. There is a greater chance that digital investors can switch to the DeFi or the decentralized finance platforms underground and continue their digital trading.
Foreseeing the strong presence of cryptocurrency markets and investors, one Commissioner from the Securities and Exchange Commission has recently issued a statement recognizing the DeFi market. Caroline A. Crenshaw recently addressed the media about the stance of the financial regulator on the matter of crypto trading. Crenshaw said that the DeFi markets are a great way forward for the investors and present them with a lot of opportunities.
SEC may Change its Stance Towards Crypto Sector
SEC Commissioner Crenshaw acknowledged the number of opportunities and benefits that the DeFi markets have to offer. However, she maintained that there is also a massive risk factor attached to the same forums. She also accepted the presence of the DeFi markets as a potentially developing and growing financial market. Offering clarity on behalf of the SEC, Crenshaw further added that the prospect of generating a massive profit attracts all types of investors to these markets.
She claimed that experienced investors could recognize the opportunities and risks that are offered by the DeFi markets. However, she added that it is not an ideal stance for the government to leave the matter of conducting financial audits up to the investors. She also claimed that since investing and transferring assets is very easy on DeFi platforms, a huge number of investors have flocked to these forums.
Speaking on the matter of DeFi market development, Crenshaw claimed that many of the DeFi markets continue to grow, and they have started to add features like smart contracts and digital asset derivatives. She further added that there is a lack of scalability and other factors like transaction speed and cost that these platforms seem to adopt at their preferred pace.
She further added that if the government agencies continue to impose a ban on these markets, it will not stop them from operating. Crenshaw pointed out that digital investors will have to rely on illegal trading, deal with a massive inflow of fraudulent tokens, and engage in unlawful trading cartels to keep benefitting from the DeFi market. According to her, the best solution is for some of the DeFi markets to get registered with SEC and operate under the supervision of the federal regulatory agency.