https://www.sec.gov/news/statement/crenshaw-defi-20211109
DeFi presents a panoply of opportunities. However, it also poses important risks and challenges for regulators, investors, and the financial markets. While the potential for profits attracts attention, sometimes overwhelming attention, there is also confusion, often significant, regarding important aspects of this emerging market. Social media questions like “who in the U.S. regulates the DeFi market?” and “Why are regulators involved at all?” abound. These are crucial questions, and the answers are important to lawyers and non-lawyers alike. This article attempts to provide a short background on the current regulatory landscape for DeFi, the role of the United States Securities and Exchange Commission (“SEC”), and highlights two important hurdles that the community should address.[3]