2023-04-14 22:41:12
© Reuters. SEC seeks regulatory equality between decentralized and centralized exchanges
CriptoFácil – The United States Securities and Exchange Commission (SEC), the financial market regulator, reopened the comment period and provided additional information on the proposed changes in the definition of “exchange” pursuant to Rule 3b-16 of the Market Law of Capitals.
The Commission initially proposed the amendments in January 2022. It then reopened the comment period in May of the same year, closing it on June 13, 2022.
The SEC reiterated the applicability of existing rules to platforms that trade crypto assets. And that includes decentralized finance (DeFi) platforms known as DEX. In addition, the regulator provided additional information and an economic analysis for systems that would be included in the proposed new definition of exchanges.
SEC x exchanges
The advisory also requested public information and comment regarding the trading of crypto assets on such systems, as well as certain aspects of the proposed changes applicable to all securities.
Therefore, the SEC’s goal is that platforms like , which is a DEX, are treated the same as exchanges like Binance and Coinbase (NASDAQ:). If this definition prevails, it is likely that the DeFi market will be heavily impacted by the decisions of the US regulator.
“Make no mistake: many cryptocurrency trading platforms already fit the current definition of an exchange. Therefore, they have a duty to comply with the securities laws,” said Gary Gensler, chairman of the SEC.
According to Gensler, investors in crypto markets should be given the same protections that securities laws offer in all other markets. And this also applies to investors using DEX. The public comment period will remain open for 30 days after the reopening announcement is posted.
Implications of change
This SEC decision could have significant implications for decentralized platforms. This is because, if they are treated as centralized exchanges, they would be subject to the same rules and regulations as the financial market.
This could lead to a shift in the way DeFi platforms operate, as well as potentially impacting the adoption and growth of these systems.
Defenders of DeFi platforms argue that the non-centralized nature of these exchanges is precisely what makes them attractive to investors and traders, providing greater autonomy and resistance to censorship.
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