Gary Gensler, chairman of the U.S. Securities and Exchange Commission (SEC), has expressed his views on decentralization, which has been a hot topic for cryptocurrencies. US Treasury Secretary Janet Yellen talked about the fight against fraud in the market.
Cryptocurrency market is becoming centralized!
President 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”. However, recently there have been allegations that projects have become centralized. Gensler also spoke about this and said that many “central” elements are starting to form in the cryptocurrency market. In this context, Gensler makes the following assessment:
Central intermediaries often seem to benefit from the network effect, data of a certain value. Technological innovations have repeatedly demolished outdated business models in the past. However, the central situation in general re-emerged.
According to the SEC Chairman, although the cryptocurrency ecosystem was established with decentralized thinking, a centralized structure is now beginning to form. From this point of view, Gensler deals with the intermediary institutions in the market. Accordingly, he notes that there is a significant concentration in this area. In addition, Gensler draws attention to these concentrations and economic rents. Therefore, he underlines that the US regulatory authorities should follow these issues closely.
“Crypto market needs regulation”
As you follow on Kriptokoin.com, the collapse of Terra and the ensuing problems have increased the calls for regulation in the cryptocurrency space. US Treasury Secretary Janet Yellen is one of those who bring this issue to the fore the most. Speaking about the US government’s crypto money policies, Yellen touched upon the fraud cases in her industry. Starting from the protection of investors, she pointed to a more effective fight against this problem. In his speech, the US Treasury Secretary drew attention to the following points:
According to reports prepared on this subject, there are too many cases of fraud and operational failure. Currently, there are some authorities trying to implement some regulations. However, we think that more powers should be given to these authorities.
Meanwhile, Janet Yellen also shared her views on the relationship between the crypto market and the overall state of the macro economy. Addressing whether it will have an impact on financial stability, Yellen noted that she does not see a major risk. The US Secretary of the Treasury expressed the following views on this matter:
The crypto industry 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.
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