On March 11, a report stated that the US Securities and Exchange Commission (SEC) is evaluating a proposal related to the definition of "exchange." This move aims to exclude entities or companies that allow trading of cryptocurrencies from this definition. This is a change in the SEC's strategy towards cryptocurrencies and digital assets.
The Acting Chair of the SEC, Mark Uyeda, spoke at the annual conference of the Association of International Banks in Washington. He said the agency is considering expanding the concept of "exchange" to include "communication protocols," but did not disclose specific details. Uyeda warned that linking Treasury market regulations to the cryptocurrency industry could be a mistake.
Uyeda has asked SEC staff to provide "options to remove certain parts of the proposal," including the part on "communication protocols" that could be removed. If this happens, protocols that provide cryptocurrency solutions or services will be excluded from the definition of "exchange."
Uyeda's comments are consistent with the views of Coinbase's Chief Legal Officer, Paul Grewal, who previously stated that the SEC's proposed rules could significantly impact DeFi. The content is for informational purposes only and is not investment advice.
