- Cryptobase sent a letter to the Securities and Exchange Commission
- In it, it writes that DEX exchanges cannot be regulated as centralized
- A company spokesman said that the SEC has not done a real economic analysis
Cryptocurrency exchange Coinbase, which is in dispute with the SEC, has sent a letter to the Commission. His main point was that decentralized exchanges can’t be regulated the same way as centralized ones.
On Tuesday, June 13, Coinbase’s chief legal officer, Paul Gravel, said that decentralized exchanges like Uniswap can’t be registered the same way as national securities exchanges. On his Twitter, he wrote:
“This proposal is too flawed in both process and substance to move forward.. Yet the SEC is trying to preempt congressional action by including unfounded assumptions about its cryptocurrency jurisdiction in proposed rules.”
Also in an 8-page letter, Gravel wrote that the agency is doing things that are not its responsibility. He stated that the SEC’s authority to regulate the industry does not encompass the power to ban the industry without explicit congressional authorization.
“Decentralized systems do exist and do not have a single organization to enforce compliance. Applying the proposed rule to DEX platforms would actually be an impossible requirement. The Commission has not done any real economic analysis and instead has used wasteful economic analysis to justify its political preferences,” Grevel wrote.
The CFTC chairman said in May that DEX exchanges could be regulated.