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Why did the head of the SEC tell us that the crypto market is centralized?

Why did the head of the SEC tell us that the crypto market is centralized?

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Answer Why did the head of the SEC tell us that the crypto market is centralized?

Bitcoin and blockchain technology have led a battle against the centralization of the financial market, but it appears that they are losing ground as digital asset firms tend towards centralization.

Securities and Exchange Commission (SEC) chief Gary Gensler has once again criticized the cryptocurrency industry, this time for centralizing while hiding behind a decentralized shield.

Speaking at the Securities Industry and Financial Markets Association’s annual meeting, Gensler criticized the crypto industry as its brokers continue to make gains with incorrect slogans.

As Gensler said:

We have seen centralization in the cryptocurrency market, which is founded on the idea of ​​decentralization; This area actually has a large concentration among the middle market brokers.

Read:The crypto community was angry after the recent decision of the Binance platform!

He added that a lot of Centralized Exchange (CEX) platforms, although they are based on the trading of decentralized digital assets, are in a position to profit disproportionately as a result of their centralization.

He went on to explain:

There is a tendency for central brokers to take advantage of scope, network effects, and access to valuable data.

The SEC wants digital assets to be classified as securities to give the authority better control over the industry.

Once viewed as securities, the strict regulations that stock brokers face will become applicable to centralized trading platforms, allowing the SEC to examine the assets listed on their platforms.

The centralization of the cryptocurrency market that Gensler spoke about was mentioned by many industry analysts who viewed crypto trading platforms as an extension of centralized finance.

Unfair rating:

The language of the SEC president showed a desire to view digital assets as securities offered by central companies.

In fact, even though the major centralized trading platforms such as Binance, FTX, and others are centralized, digital assets remain decentralized with ever-increasing community participation.

Read:Binance reveals the availability of the “Short” option on the BNB cryptocurrency

Privacy enthusiasts insist that decentralized trading platforms are the way forward to wage a battle over increased government oversight of the sector.

The recent tornado incident showed that some e-commerce centers complied with authorities’ directives before they were explicitly asked, while DEX exchanges, on the other hand, continued to demonstrate their commitment to user privacy and decentralization.

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