SEC Chair Gary Gensler: Crypto Is Still Highly Centralized
Recently, in a speech made at the Securities Industry and Financial Markets Association’s (SIFMA) annual meeting on Monday, Securities and Exchange Commission (SEC) Chair Gary Gensler yet again voiced his criticism against cryptocurrencies and the crypto industry.
While warning the audience about centralization of traditional finance, Gensler took the chance to criticize the crypto industry. Gensler claims that despite the industry being founded on ideals of decentralization, he claims there’s still a lot of centralization that can be seen.
“We’ve even seen centralization in the crypto market, which was founded on the idea of decentralization. This field actually has significant concentration among intermediaries in the middle of the market.” Gensler said.
He then goes on to further explain that large crypto exchanges like Binance, Coinbase and FTX are responsible for most of these centralization issues, stating: “As it relates to the intermediaries, the so-called crypto exchanges or lending platforms and the like, they’re highly centralized.“
Previous Comments On Centralization
This isn’t the first time that Gensler has commented on the lack of decentralization in cryptocurrencies. In fact, the SEC chair previously stated his thoughts that the crypto industry is for the most part, “isn’t so decentralized”.
Gensler stated, “This market isn’t so decentralized. Now, we see this industry populated by large, concentrated intermediaries, which often are an amalgam of services that typically are separated from each other in the rest of the securities markets.”