SEC's Gensler Targets DeFi Exchanges with Proposed Regulations
The SEC announced plans to revisit the definition of what is considered an exchange, which would include DeFi protocols like decentralized exchanges. SEC Chairman Gary Gensler said that investors in the crypto markets must receive the same protections as in all other markets. However, SEC Commissioner Hester Peirce criticized the plan as overly broad and undermining First Amendment protections. DeFi is praised for its decentralization but criticized for its lack of security. DEXs like Uniswap allow anyone to swap crypto coins and tokens without revealing any information. Some in the crypto industry fear that exchange-style regulation for decentralized protocols may stifle innovation in the US and drive businesses offshore.
- SEC’s Hester Peirce Says Gensler’s Plan to Target DeFi Undermines First Amendment Decrypt
- U.S. SEC Moves Toward DeFi Oversight as It Reopens Proposed Regulations CoinDesk
- U.S. SEC sees decentralized crypto platforms as exchanges, seeks public input Reuters
- SEC’s Gensler Takes on Crypto DeFi Exchanges With Refreshed Rule Plan Yahoo Finance
- SEC considers reopening "exchange" definition proposal Axios
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