Gary Gensler, leader of the U.S. Securities and Exchange Committee (SEC), has expressed his views on decentralization, which has been a hot topic for cryptocurrencies. US Treasury Secretary Janet Yellen spoke about the effort with the fraudulent incidents in the market.
Cryptocurrency market is becoming centralized!
Leader Gary Gensler, who did not fall off the agenda with his statements in the SEC case with Ripple (XRP), was involved in a discussion in the market at the event in New York. As you know, the essence of cryptocurrencies is that they are “decentralized”. But lately there have been arguments that projects have become central. Gensler also spoke on this bet, saying that many “central” elements are starting to form in the cryptocurrency market. In this context, Gensler makes the following assessment:
It is seen that central intermediaries generally benefit from the network effect, data that has a certain value. Technological innovations have repeatedly demolished outdated business models in the past. However, the central situation in general resurfaced.
According to the SEC Chairman, although the cryptocurrency ecosystem was established with a decentralized idea, a centralized structure has now begun to form. From this point of view, Gensler deals with the intermediary institutions in the market. In this respect, he notes that there is a valuable aggravation in this area. In addition, Gensler draws attention to these concentrations and economic rents. That’s why he underlines that US regulatory agencies should follow these bets closely.
“Crypto market needs regulation”
Koindeks.com As you follow, Terra’s collapse and the ensuing troubles have increased the invitations for regulation in the cryptocurrency space. One of those who brought this issue to the fore the most is Janet Yellen, the US Treasury Secretary. Speaking about the US government’s crypto money policies, Yellen touched upon the fraud incidents in her branch. Moving from the protection of investors, he pointed to a more active effort with this problem. In his speech, the US Treasury Secretary drew attention to the following issues:
According to the reports prepared in this bet, there are too many cases of fraud and operational failure. Currently, there are some authorized institutions trying to implement certain regulations. However, we think that more powers should be given to these authorities.
In this midst, Janet Yellen also expressed her views on the relevance between the crypto market and the general state of macroeconomics. Addressing whether it will have an impact on financial stability, Yellen noted that she does not see a big risk. The US Secretary of the Treasury expressed the following views on this issue:
The crypto segment in its current form does not pose a large-scale risk. However, this may change over time. Our need for regulation and our demands stem from this.