US SEC Commissioner Peirce warns: L2 chains with centralized sorters may face exchange registration requirements

U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce warned that Layer 2 blockchains running centralized matching engines could face exchange registration requirements, while advocating for the protection of truly decentralized protocols. In an interview on "The Gwart Show," she distinguished between immutable code on decentralized networks and centralized entities that leverage blockchain transactions. The head of the SEC's cryptocurrency task force believes that truly decentralized protocols cannot be owned and can be used by anyone.