The U.S. Securities and Exchange Commission has reopened the comment period on proposed amendments to the U.S. Securities Exchange Law. April 14th.
SEC aims to broaden definition of ‘exchange’
The proposed changes relate to the definition of “exchange” under Exchange Act Rule 3b-16 and may affect certain cryptocurrency platforms.
Specifically, the new definition broadens the definition of an exchange, potentially requiring registrations from services not typically considered an exchange, such as DeFi platforms. This possibility has been acknowledged by the SEC in its current announcement.
However, the SEC has yet to make the proposed changes.
SEC Chairman Gary Gensler said the comment period “will help address comments from a range of market participants, particularly those in the cryptocurrency market.” Nonetheless, he confirmed that securities laws already apply to many crypto trading services.
The SEC first proposed an amendment in January 2022. Previously, from May 2022 he resumed the comment period until June.
Proposed changes face backlash
The proposed change has received pushback from various parties.
SEC Commissioner Hester Peirce, known for his positive attitude towards the cryptocurrency industry, said: announced a dissenting opinion on the SEC’s website.
Peirce wrote that the change would stifle innovation, adding that the SEC previously chose not to regulate emerging platforms in the 1990s for this reason. He claimed that he aims to “solve non-existent problems” by doing so.
Advocacy Group Coin Center repeated A previous criticism that claimed the change was “unconstitutional.” Other industry members, including Coinbase and the Blockchain Association, have voiced their criticism of the change in early 2022.
The proposed changes are just one of many attempts by the SEC to more thoroughly regulate the cryptocurrency industry. Recently, the SEC implemented rules for staking and revenue services, pushing forward changes that may affect the custody of cryptocurrencies.
It first appeared on CryptoSlate after the SEC resumed commenting on proposed changes to the definition of “exchange.”