- Financial Services Committee members point out that this would hurt the economy
- SEC proposed changing the regulatory definition of “exchange” twice, last March and this April
- If this happens, the regulator would gain control of the entire DeFi segment
The SEC introduced draft amendments to the Securities and Exchange Act (1934) in March 2022. The regulator is demanding that the definition of “exchange” be changed to include service providers in the DeFi sector in the regulation.
Republicans on the House Financial Services Committee sent an open letter to the Commission this week. In it, they asked that the amendment proposal be rescinded because it could harm the U.S. economy.
The letter can be read at. According to the reds, the SEC’s requirement exceeds its authority.
What’s more, it could cause irreparable damage to both virtual asset service providers and the U.S. economy as a whole.. The agency’s actions are thus contrary to the state’s interests.
And this is not the first time the Republican camp has criticized the regulator’s actions. Some members of Congress are even demanding that Gary Gensler be fired and that the agency be completely restructured.
In April of this year, the SEC again proposed changing the current legislation. We covered this situation in detail in a separate article.
For now, these amendments have not passed. But if that happens, any DeFi trading platform operating in the U.S. will be in the regulator’s jurisdiction by default.
If that happens, then any DeFi trading platform operating in the U.S. will be in the regulator’s jurisdiction.