- They wrote an open letter to the regulator
- It criticizes their uniform approach to CEX and DEX
- It brings confusion to rulemaking
Representatives of cryptocurrency venture capital firm Paradigm wrote an open letter to the SEC. It was authored by Special Counsel Rodrigo Seira and the firm’s Director of Policy Justin Slaughter.
In the document, they criticize the SEC’s new definition of cryptocurrencies. And they also propose to withdraw the amendments and start from scratch.
The key problem with the new regulation is that the SEC in its definition of an exchange combines centralized and decentralized platforms. This leads to vague language in describing such companies.
Paradigm said the agency should withdraw the new amendments and terms. They need to engage with the DeFi industry first and then try to write the laws anew.
“There needs to be genuine engagement with the DeFi industry. There needs to be a clear assessment of the statutory limits on its authority in this area, as well as an exhaustive analysis of the costs and benefits of the alternative approaches that Congress actually authorized it to take.”
Seira and Slaughter urged the regulator not to rush through the rulemaking process. And introduce new rules only after deep consultation with industry representatives.
Remind that the chairman of the SEC in a recent interview denied the benefits of cryptocurrency assets and exchanges.