Digital asset market draws more regulatory scrutiny (MarketWatch)

The segment of the digital asset market referred to as DeFi or decentralized finance, where investors lend out their digital coins, is being reviewed by the SEC. Coinbase’s crypto platform is being investigated by the regulator, which likely views the lending program as securitizing the crypto being used. FrontLine’s Founder and President Amy Lynch states that the SEC has been clear in its perspective that a crypto asset becomes a security once it’s being lent out. Ms. Lynch expects that when the SEC decides on whether crypto lending programs pose enough of a concern and violate securities rules, they would likely expand their scope to other firms with similar offerings. See MarketWatch, “Here’s why Coinbase is in hot water over crypto lending – and how the SEC is sending a shot across the bow for DeFi”