The SEC head Gary Gensler has said that contrary to popular belief, the cryptocurrency market is not characterized by decentralization.
According to him:
“Intermediaries benefit from scale, network effects and access to valuable data. While technological innovation is constantly disrupting existing business models, centralization still has a resurgence. It is also present in the crypto market, where there is a significant concentration of intermediaries.”
The head of the SEC has warned of the need to be vigilant in areas where centralization and potential economic rents have increased or may increase in the future.
He has admitted that most crypto exchanges are violating securities laws by listing unregistered investment contracts.
