SEC Considers Decentralized Crypto Platforms as Exchanges, Requests Public Feedback

The US SEC has voted 3-2 to seek public comment on its proposal to expand the definition of an "exchange" to include decentralized cryptocurrency platforms, also known as DeFi platforms. The proposal, first introduced in January 2022, aims to capture many more venues for regulation beyond traditional exchanges. While some DeFi platforms may fall under the proposed definition, others may already be considered exchanges by the existing one. The move has raised additional questions for the sector, with many in the industry calling for regulatory clarity.