SEC’s Lone Republican Warns of Threat to Crypto DeFi Platforms in New Agency Plan

The lone Republican on the U.S. Securities and Exchange Commission is warning a recent proposal that would add oversight to systems for trading government securities could also give officials sweeping new powers to scrutinize digital-asset platforms.

Hester Peirce, who favors a light-touch approach for virtual currencies, says that despite not mentioning crypto once, a 654-page plan released last week by the SEC may threaten the industry’s decentralized finance trading platforms. Peirce opposed putting the regulation out for public comment, while the commission’s three Democrats, including Chair Gary Gensler, voted to do so.