Securities and Exchange Commission (SEC) Chairman Gary Gensler issued another warning to crypto platforms: "Ask permission before launching a product because there is no forgiveness if you get caught breaking the rules." He made this comment when he was speaking with European policymakers on Wednesday to point out the need for more coordinated structure in regulating the crypto industry.

Gensler said the US has clear regulations, but noted that there are still gaps needed to be addressed. Because of this, he wants tougher stance against brokerage firms such as ban on payments for order flow.

These comments are not new nor surprising since he recently called the industry the "Wild West" and called on Congress to allow the SEC to set more rules.

As such, the Congress put more emphasis on the sector, including new tax reporting requirements on the $ 1 trillion infrastructure bill recently passed by the Senate.

It is obvious that regulators are becoming increasingly concerned that the digital asset industry is spiraling out of their control. DeFi platforms, in particular, are in the spotlight. Gensler said these platforms are "heavily centralized," so they must be regulated by the SEC or other agencies.

Currently, digital tokens appear on all DeFi platforms, and anyone can launch a token on them. Uniswap, for example, reported that it has 1.5 million users and 60 million transactions processed. Sales over the past 24 hours were $ 455 million, based on total liquidity of $ 4.6 billion.

But even if the SEC sets more rules for DeFi platforms in the US, the crypto industry has already expanded so much globally. Most of the trading volume now takes place outside of US exchanges, such as Coinbase Global (ticker: COIN) and other platforms in Canada, France, Germany, Italy, Japan and the UK.

Major exchanges such as Binance and FTX, although not available to US crypto traders, account for most of the cryptocurrency liquidity, which is estimated to be five times that of regulated domestic exchanges.

Some exchanges are already paying heavy fines. For example, BitMex recently agreed to pay $ 100 million to settle a lawsuit filed by the Commodity Futures Trading Commission.

And if repression comes, it will most likely not happen overnight. Congress may have to authorize the SEC to regulate bitcoin and other decentralized tokens as securities (although the initial coin offering may now be required to register or receive an exemption). Other regulators will want to play their part too, including the CFTC (where Gensler was the former chairman).

Unclear regulatory prospects and a lengthy rule-making process may also be reasons why crypto investors are not particularly concerned.