SEC contemplates expanding legal definition for stock exchanges and including DeFi platforms under this category – DiarioBitcoin

US authorities capture nuclear engineer after receiving cryptocurrencies for the sale of secret plans - DiarioBitcoin

SEC contemplates expanding legal definition for stock exchanges and including DeFi platforms under this category - DiarioBitcoin For Angel Di Matteo @shadowargel

Some critics claim that for platforms DeFi it would be impossible to meet the criteria imposed by the SEC, which could imply the cessation of its operations in US territory.


The US Securities and Exchange Commission (SEC) apparently has plans to expand the definition used to refer to stock exchanges, a measure that would seek to incorporate cryptocurrency exchanges and could lay the groundwork for much more aggressive measures against the ecosystem of digital currencies, especially towards the space of decentralized finance (DeFi).

SEC considers changing definition of stock market

According to a new proposal published yesterday, the SEC would be interested in the fact that the definition of a stock market would now be much broader, also encompassing systems that allow buyers and sellers to communicate their interest in trading this type of asset. , which would include decentralized exchanges (DEX) What Uniswap, PancakeSwap and many others for bringing together this type of people interested in trading digital currencies.

The measure would require platforms that meet these characteristics to register with the SEQ as stockbrokers, and since decentralized exchanges could not meet the demands required by this type of license, this could imply the imminent cessation of their operations throughout the United States.

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More delicate than it seems

Given that the new definition could be much broader and more ambiguous than it might seem a priori, some analysts and enthusiasts are concerned about the possible repercussions that this could have for the sectors associated with digital currencies.

In this regard, the sector enthusiast DeFi, Gabriel Shapiro, presented an even more delicate scenario for this type of change, since such a definition could also address even block explorers, such as etherscan, precisely because they allow users to interact with smart contracts to communicate commercial interests. In this sense, it highlights that all this can be interpreted as a restriction on freedom of expression, for which it would be completely unconstitutional.

From a regulatory angle, the commissioner of the SEC, Hester Peirce, also expressed her concerns and echoed some aspects mentioned above, placing special emphasis on the broad and diffuse nature of the changes proposed by the entity, which even go far beyond the scope and jurisdiction of the regulatory body.

On the other hand, Peirce criticized the fact that the interested community has very little time to read, understand and consider the proposal, which is not consistent with the implications it could have, since it would be making changes to an ecosystem that moves thousands of million dollars, which could be harmed in unforeseen ways.

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Emphasis for regular

This change in approach to SEQ seems to go hand in hand with the need manifested by the directors of the organization, who have expressed their concern about the commercial boom that has been monopolizing the sector DeFi throughout 2021.

In this sense, the comments of the president of the SEC, Gary Gensler, who has frequently reiterated that the body he chairs should regulate the protocols DeFi. The manager defends the idea that many of the tokens that circulate on these platforms should be considered as securities, and that the decentralized finance sector should be governed by the principles and laws that would apply to stockbrokers.

Let us keep in mind that recently published reports also indicate that the administration of President Joe Biden has plans to regulate digital currencies in general, for which he qualifies as a matter of National security that its federal entities join efforts in this matter.

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Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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