Gary Gensler wants to put DeFi in his place

“All cryptocurrencies must be regulated”.

SEC CEO Gary Gensler announced an unequivocal message for the crypto sector this week, and Decentralized Finance (DeFi) in particular had to suffer as a result.

On September 21, Gary Gensler, Head of the US Securities and Exchange Commission, announced that there was no question for him that crypto tokens should be treated like securities. For this reason, he is convinced that many tokens traded on exchanges are required to register with the SEC. In plain language, this means that the 63-year-old wants to apply a law from the 1930s to the decentralized finance sector. Gensler calls on the various DeFi projects to work with the SEC. Only in this way is it possible for the projects to comply with the tax, money laundering and securities regulations applicable in the USA.

We have robust powers with the SEC and we will use them. It would be better if the platforms that trade securities, that do lending or staking, come to us. Together we can find out how to make them compliant with the law.

In addition, Gensler promised a crackdown on those who act outside of the SEC’s legal requirements. As a result of this news, the DeFi sector performed poorly. In the past seven days alone, the DeFi Pulse Index (DPI) lost almost 30 percent of its value.

At press time, DPI is trading at $ 291.66.

Bitfinex connects CeFi with DeFi

More positive news comes from the crypto bad Bitfinex. This announced on Thursday that it is connecting its centralized trading platform with the Layer 2 DeFi exchange DeversiFi. On the one hand, the bridge is intended to give users more data protection. On the other hand, users should also be able to access the highly liquid and user-friendly properties of a centralized exchange at the same time. In addition, Bitfinex’s announcement shows that transactions are initially only possible with the controversial Stablecoin Tether (USDT). In the future, however, it will also be possible to trade other ERC-20 tokens, according to Bitfinex.

Commented Will Harborne, CEO and Co-Founder of DeversiFi:

Layer-2 is the future of the blockchain. Whether it’s the Lightning Network for Bitcoin or roll-ups like DeversiFi for Ethereum, cryptocurrencies and DeFi are about to finally be accessible to everyone.

Furthermore, the CEO of DeversiFi believes this new product will be quickly adopted by Bitfinex’s customer base as interest in DeFi is currently growing exponentially.

pNetwork suffers millions in damage from hacker attack

Once again, hackers managed to steal several million US dollars in cryptocurrency. This time it hit pNetwork. The project based on the Binance Smart Chain (BSC) lost the equivalent of around 12.7 million US dollars as a result of the hack. The cross-chain DeFi platform announced on Twitter on September 19 that the network had been attacked and a hacker was able to steal 277 Bitcoin.

Actually want pNetwork provide users with “effective cross-blockchain compatibility for decentralized applications”, with the help of which they can access any asset. The idea is that so-called “bridges” are offered between the individual blockchains. The project is therefore similar to the DeFi exchange THORChain, which also offers cross-blockchain token transfers.

Cross-chain platforms in particular seem to be increasingly the target of hackers in recent months. For example, in addition to pNetwork, THORChain also lost several million US dollars to attacks by hackers in the past few months. As a result, the decentralized exchange has announced that it will invest massively in expanding the security of its platform, but the future has yet to show how sustainable these investments are.

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