Bernstein experts condemned SEC and predicted growth of DeFi sector

Bernstein experts condemned SEC and predicted growth of DeFi sector

Author: Robert Strickland

Bernstein experts condemned SEC and predicted growth of DeFi sector

Bernstein researchers have assured: the behavior of U.S. financial regulators will cause the decentralized finance (DeFi) sector to begin to grow strongly. They predicted the scaling of "offshore" cryptocurrencies. The researchers report stated that excessive supervisory efforts will lead to the activation and spread of decentralized financial applications created by anonymous teams. Analysts condemned the actions of notrolling authorities.

Experts came to this conclusion after the U.S. Securities and Exchange Commission (SEC) accused the cryptocurrency exchange Kraken of illegally offering steaking services to customers. The main question, according to analysts, was whether the process of generating passive income itself was a reason to ban the activity as falling under the Securities Act.

"The question remains whether the regulator will pursue all betting programs, even if they disclose specific information about returns, allow users to actively place and withdraw their cryptocurrencies," Bernstein analysts Gautam Chhugani and Manas Agrawal noted.

The researchers stressed that most members of the crypto industry believe "the lack of guidance and regulation specific to the cryptocurrency sector will be detrimental to good industry participants who prefer to offer transparent steaming services."

In addition, there was growing concern among members of the cryptocurrency community that stricter regulatory measures were linked to a massive attack by U.S. authorities on the digital currency sector. 

Bernstein said that excessive regulation will make it more difficult for supervisors to monitor and control anonymous projects in the decentralized network. The paper stated that the evolution of the crypto industry would then take place in jurisdictions such as Singapore and Dubai, as well as new potential crypto hubs in Hong Kong and London.


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