According to PANews, Gary Gensler, Chairman of the U.S. Securities and Exchange Commission (SEC), recently discussed the challenges faced by Decentralized Finance (DeFi) in implementing anti-money laundering laws due to the permissionless nature of blockchain. The report was initially made by Fox reporter Eleanor Terrett.
Gensler highlighted the inherent difficulties in regulating DeFi due to the decentralized and permissionless nature of blockchain technology. This poses significant challenges for the implementation of anti-money laundering laws, as the lack of a central authority makes it difficult to enforce regulations.
The SEC Chairman's comments underscore the ongoing regulatory challenges faced by the DeFi sector, which has seen rapid growth in recent years. The sector's reliance on blockchain technology, which operates without the need for a central authority, presents unique challenges for regulators. The SEC, under Gensler's leadership, continues to grapple with these issues as it seeks to ensure the integrity of the financial markets while also accommodating the innovative potential of blockchain technology.