US Securities and Exchange Commissioner Hester Peirce; He says he believes giving something to someone else is different than selling something, although DeFi tokens provide stock-like benefits. Peirce notes that as a result, questions about the regulatory structure and how these tokens can affect corporate governance have been sought.
Speaking at the LA Blockchain Summit, Peirce said these were his personal views. Pierce gave such a memorial to the question of handling governance tokens as securities used by many decentralized finance (defi) platforms.
Instead, Peirce argued that “there are other people on the commission who might look at the same facts and circumstances differently than I do”, but that “the decision of the SEC is required as to how people intend to distribute tokens.
Indeed, throughout the year, US regulators, including the SEC, tracked individuals and organizations involved in raising funds through ICOs in the United States jurisdiction.
Referring to sections 5 (a) and 5 (c) of the U.S. Securities Act, regulators have accused many such individuals and organizations, including gaming platform Unikrn, of alleged violations of securities regulations related to the 2017 ICOs. It was said that, along with a $ 6.1 million fine, it sent the wrong message to innovators.
Peirce is known for opting for the “safe harbor” approach in his own words, instead of imposing hard fines in cryptocurrency circles. Under this scheme, cryptocurrency companies will be given three years to delegate power to their communities before the SEC takes action for alleged violations of securities laws.
However, according to Finder’s recent ‘Cryptocurrency Predictions Report’, it turns out that most of the experts on the panel believe the defi industry will fix itself in the next twelve months. “The long-term outlook for the defi is positive, but there will be many obstacles in the way,” said one panelist, Jason Lau of Okcoin.