Coinbase CLO deems SEC registration for DEXs 'impossible'

Coinbase's Chief Legal Officer, Paul Grewal, has criticized the proposed rule change from the Securities and Exchange Commission (SEC) that could change the definition of an exchange and how digital assets are regulated. Grewal said the SEC proposal "tries to fit a square peg in a round hole" and was "too flawed on process and substance to move forward." He added that requiring a decentralized exchange (DEX) to register in the same way as a national securities exchange is impossible and violates the Administrative Procedure Act. Coinbase's comments came amid the SEC being at the forefront of attention in the US concerning the regulation of cryptocurrency.