At the All Markets Summit hosted by Yahoo Finance on Monday, US Securities and Exchange Commission (SEC) Chairman Gary Gensler stated that the Decentralized Finance (DeFi) space is one of the most innovative areas in the crypto field, but this does not mean it can evade regulation.

"While that's all interesting, it reminds me a lot about when peer-to-peer lending came along about 15 years ago," Gensler said, it took about three to five years for regulators to include the P2P system in the scope of investor protection, this is the process he currently sees in DeFi. 

Gensler emphasized the financial stability and public protection in DeFi. He said: "There's a lot of lending going on. There's a lot of trading going on. And without protection, I fear that it's going to end poorly."

By Mary Liu