The United States Securities and Exchange Commission announced in April this year it will be revisiting the proposed redefinition of an “exchange” under the agency’s rules — a move that could include crypto market participants in decentralized finance.
On June 7, Paradigm commented on the SEC’s proposed redefinition of “exchange.”
Through this haphazard rulemaking, the SEC inappropriately attempts to bring crypto trading platforms, including DEXs, under its remit and regulate them as securities exchanges. It thus appears that after suing Coinbase for failing to do the impossible—registering as a securities exchange when it was incapable of doing so—the Commission now intends to force DEXs into the same Hobson’s choice.
Paradign comments that the proposal by the SEC exceeds the boundaries of its statutory jurisdiction and disregards the Administrative Procedure Act, a vital law that safeguards the American public from autocracy and arbitrary decisions. As a result, it is imperative that this proposal be swiftly retracted.
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Policy and Regulation
DEX
