The US Securities and Exchange Commission (SEC) has announced its intention to revise a proposed regulation that will require digital asset exchanges and DeFi platforms to register with the regulator. The SEC has reopened the comment period and issued additional details on modifications to the definition of “exchange” under Exchange Act Rule 3b-16.
The SEC has reopened the comment period for the pending rulemaking after releasing supplemental information on proposed amendments. The comment period will remain open for 30 days after the publication of the reopening release in the Federal Register. The purpose of the proposed rule is to address a “regulatory disparity” where many securities trading platforms are not registered. The agency, led by Chair Gary Gensler, aims to close this gap with the proposed rule.
The crypto industry has provided feedback to the SEC in the past year, panning the proposal for lacking clarity and expanding the regulator’s power unreasonably. The SEC’s tough stance on cryptocurrencies, led by Gary Gensler, has received media attention. Additionally, the agency has been actively pursuing regulatory and enforcement actions against crypto, including a lawsuit against Ripple.
Gary Gensler stressed that existing crypto trading platforms could be categorized as exchanges under current regulations and must comply with securities laws. He also stated that investors in the crypto market deserve the same level of protection as traditional markets. At a recent SEC meeting, Commissioner Hester Peirce dissented from her colleagues and accused the Commission of prioritizing “protecting incumbents” over “promoting innovation and competition.” Peirce is known for her pro-crypto stance.
The SEC’s announcement has been met with mixed reactions from the crypto community. Some have welcomed the clarification of rules, while others have criticized the SEC’s tough stance on the industry. The reopening of the comment period provides an opportunity for stakeholders to voice their opinions and concerns.
It remains to be seen how the proposed rule will impact the crypto industry. However, it is clear that the SEC is taking a more active role in regulating the space. As the crypto market continues to grow and evolve, it is likely that we will see more regulatory scrutiny and oversight.
In conclusion, the SEC’s decision to revise a proposed regulation that will require digital asset exchanges and DeFi platforms to register with the regulator is a significant development in the crypto industry. The reopening of the comment period provides an opportunity for stakeholders to voice their opinions and concerns. It remains to be seen how the proposed rule will impact the industry, but it is clear that the SEC is taking a more active role in regulating the space.
