The US Securities and Exchange Commission (SEC) has announced its intention to refine a proposed regulation to clarify the requirement for digital asset exchanges and DeFi platforms to register with the regulator. To this end, the SEC has reopened the comment period and released further information on the proposed modifications to the definition of “exchange” under Exchange Act Rule 3b-16. This move underscores the SEC’s commitment to ensuring that the digital asset industry operates within a clear and transparent regulatory framework to protect investors and promote market integrity.
The SEC has announced the reopening of the comment period for the pending rulemaking following the release of additional information on proposed amendments. Interested parties are invited to submit their comments within 30 days of publishing the reopening release in the Federal Register. This move underscores the SEC’s commitment to transparency and stakeholder engagement in the regulatory process.
In 2022, the Securities and Exchange Commission (SEC) introduced a proposed rule to tackle the “regulatory disparity” issue due to the lack of registration of numerous securities trading platforms. Under Chair Gary Gensler’s leadership, the SEC is committed to bridging this gap with the proposed rule, which aims to bring these platforms under regulatory oversight.
Over the previous year, the cryptocurrency industry has offered its input to the SEC, expressing dissatisfaction with the proposal due to its lack of transparency and the excessive expansion of regulatory authority.
The SEC’s unwavering stance on cryptocurrencies, spearheaded by the astute leadership of Gary Gensler, has garnered significant media coverage. Furthermore, the agency has diligently pursued regulatory and enforcement measures against the crypto industry, exemplified by their recent lawsuit against Ripple.
Furthermore, Gensler emphasized that the current regulatory framework classifies established cryptocurrency trading platforms as exchanges, mandating their adherence to securities laws. He further asserted that investors in the digital asset market are entitled to the same level of safeguarding as conventional markets.
During a recent SEC meeting, Commissioner Hester Peirce expressed her dissenting opinion and criticized the Commission for placing more emphasis on safeguarding established players rather than fostering innovation and competition. Peirce, recognized for her pro-crypto stance, made her stance clear.
