Senior US Securities and Exchange Commission official: It is dangerous not to identify individuals in the defense
Caroline Crenshaw, a senior official with the US Securities and Exchange Commission, said in a recent article that the anonymous activity of DeFi users is very dangerous and increases the likelihood of market manipulation.
to the Report In an article published on November 9, Kevin Telegraph, Carolyn Kernshaw, a senior official with the US Securities and Exchange Commission, warned of the benefits of decentralized finance and warned against adhering to regulatory frameworks. , Can be dangerous.
This article, entitled “Risks, Regulations, and Opportunities for Defense,” is the first article in the first issue of China International Journal of Block Law. In this article, Krenshaw explains that he believes that the Defai community should solve its problems of transparency and uncertainty of individuals’ identities and bring its activities in line with the rules of the Exchange Commission.
He said in this article:
To date, the new utopia of Defai has not used regulatory frameworks that have introduced important safeguards into other markets.
On what he sees as a lack of transparency, Krenshaw said Difay does not have the necessary market support. He says the measures “help bi-level markets so that professional and local investors can make a good profit.”
Although the code for most DIFA projects is open source and all transactions are done within the chain, Crenshaw says the conditions are better for professional investors than for micro-investors because they have the tools to examine the performance of the code and the DIFA project development team.
“They say:
It makes no sense to design a financial system that requires investors to be experienced interpreters of complex code.
Also read: What is DeFi or Decentralized Finance?
Crenshaw said he was concerned about the link between anonymous user activity and market manipulation. In this article, he explains that when market participants operate anonymously, it is difficult to detect the use of bots and collusion in transactions and put pressure on them. According to him, investors are more likely to lose money due to market manipulation, because normal market signals such as trading volume and price movements can no longer be trusted.
In addition, he believes that Defy projects should be discussed with the US Securities and Exchange Commission in order to find a solution to the problem of anonymous user activity and compliance with existing laws.
Defai has always introduced anonymity as its characteristic, and it has never been the case that this characteristic is a burden on its members. However, Krenshaw believes that investors do not prefer anonymity to monetization.
He says:
When it comes to decentralized finance, I doubt most micro-investors will do so, as they seek more privacy. They want to make more profit than other investments.
Krenshaw noted on October 12 (October 20) during a press conference by the US Securities and Exchange Commission that existing regulatory frameworks, including controlling and restricting public access to other markets, are sufficient to protect investors in the digital marketplace.
Although Cranshaw’s criticism of the sentiments of Senators Elizabeth Warren and Dan Berkovitz, a former member of the Commodity Futures Trading Commission, is not as militant, his views are more unfavorable than those of Hester Pierce. Hester Pierce is another senior stockbroker who supports the Safe Harbor Act. Under the law, developers of digital currency projects are given three years to build a decentralized network.