SEC Chair Gary Gensler Claims DeFi Is Centralized

On Thursday, U.S. Securities and Exchange Commission Gary Gensler told Fox Business host Maria Bartiromo that decentralized finance (DeFi) platforms have “a lot of centralization”:

The 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 the extent work with us and get registered.

Gensler also made similar comments in his interview with The Wall Street Journal that was published earlier today.

The top regulator described DeFi as “a misnomer” since many projects that fall under the umbrella term are only partially decentralized:

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