Esther Pierce: “Only real decentralization will save Defi projects from regulators” - Bits Media

Commissioner of the Securities and Exchange Commission of the United States (SEC) Ester Pierce warned of the danger of “shadow centralization” in the decentralized finance sector (DeFi).

In an interview with the founder of Defiwatch Chris Black (Chris Blec) Esther Pierce (Hester Pierce) said, what Decentralized organizations and Defi are new concepts for regulators. According to her, “The presence of a P2P system without central intermediaries is very different from that, What do we usually deal with ".

“If you want to be decentralized, You need to strive for real decentralization. This will place you in another category from the point of view of the regulator, because we had not had to deal with such projects before. If regulatory authorities can find a centralized part or group of people, for which they can grab, They will do it. So I think, that the creators need to be careful and carefully think through the structure of their projects, Since in the future it will make meaning ", - said Esther Pierce.

Black asked the pier's opinion about the best way to develop decentralized protocols. He specified, Should the founders strive to achieve the same level of decentralization, that Bitcoin, or start the development "Very carefully, and then think about regulation ", To avoid violation of the law. The commissioner answered, that the current rules have been developed in this way, that "any legal entity or individual, involved in the financial industry, probably, at least one regulatory framework will fall under the effect of at least one regulatory.

Pierce called the creators of Defi protocols, who believe, that they are engaged in new activities, not falling under the framework of legislation, Contact the regulators and "find out, Is there an alternative way to comply with the requirements of the law ".

“If you want to prove your difference from the system of centralized or trade finance, Then you must show, that you are doing something radically new. From my point of view, This requires decentralization. If trust really comes from the code, This is very different from the situation, When trust comes from one company or group of people ", - said Pierce.

The Commissioner also noted the predominance of "shadow centralization" in the Defi sector, where opaque management structures can lead to centralized control of the protocol. However, the pier called on the regulatory authorities to adapt to decentralized innovations and said, that they "need to better understand, how to work with innovators ".

“This is one of the reasons for that, that our financial system is so concentrated ", She continued. “Because the only people, who can afford to wait, To get permission - these are people, who already have a lot of money and good lawyers ".

To the question about, how would the situation for Satoshi Nakamoto, If he turned to SEC before the start of bitcoin, Pierce answered:

“In the yard 2021 year, Very likely, that Satoshi would still try to get a letter from the regulator with a guarantee of inaction ".

This week, American regulators actively discussed the issues of supervision of the cryptocurrency industry. While the chairman of the US Securities and Exchange Commission (SEC) claims, that SEC needs great powers to regulate cryptocurrency markets, Former CFTC chairman considers, that this issue does not fall under the jurisdiction of SEC.