<\/p>\n
House Financial Services Committee Republicans have asked the SEC to rescind its proposed rule to change the definition of “exchange.” <\/p>\n
In a letter sent to the securities regulator Tuesday ahead of the committee’s crypto-focused hearing, Republicans argued the proposed rule exceeds “statutory authority” granted to the SEC. <\/p>\n
\u201cThe proposed rule will stifle innovation and harm digital asset market participants and the US economy more broadly,\u201d committee Republicans said in the letters<\/a>,<\/p>\n In January 2022, the SEC proposed<\/a> an amendment that would include “Communication Protocol Systems” within the agency’s definition of an exchange, meaning these entities would have to register as such. In response to public feedback, the SEC reopened the comment period for the proposal in May 2022, and again reopened the window in April 2023. <\/p>\n \u201cThe reopening release reiterated the applicability of existing rules to platforms that trade crypto asset securities, including so-called ‘DeFi’ systems, and provides supplemental information and economic analysis for systems that would be included in the new, proposed exchange definition,\u201d the The SEC said in April when it reopened the comment period for the second time. <\/p>\n Crypto industry members and advocates have expressed concern with the proposed definition change<\/a>arguing that the rule goes beyond the SEC’s powers, as defined in the Administrative Procedure Act (APA).<\/p>\n \u201cWe write to request that the Commission withdraw its proposed redefinition of ‘exchange’ and begin its consideration of how to adapt its regulations in the DeFi context anew \u2014 after rigorous economic analysis, genuine, broad engagement with the industry, and a close look at the limits of its statutory jurisdiction,\u201d crypto investment firm Paradigm wrote<\/a> to the SEC earlier this month.<\/p>\n The Blockchain Association, a lobbying group dedicated to advancing crypto-friendly policy, also released a statements<\/a> Tuesday, arguing that the SEC is going beyond its jurisdictional powers by attempting to expand the definition so broadly. <\/p>\n House Republicans expressed similar concerns in their comments Tuesday. <\/p>\n “In the supplemental information provided by the Commission, the SEC estimates that ‘an additional 15-20’ systems trading digital assets would be designated as an exchange,” the letter stated. “However, given the breadth of the new definition, the Proposed Rule would have a much broader impact than what is accounted for in the proposal.” <\/p>\n The deadline to submit comments for this newly reopened period is Tuesday, June 13, according to the SEC’s Filing<\/a> on the Federal Register.<\/p>\n Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter<\/a> now.<\/strong><\/p>\n Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief<\/a>,<\/strong><\/p>\n Can’t wait? Get our news the fastest way possible. Join us on Telegram<\/a> and follow us on google news<\/a>,<\/strong><\/p>\n House Financial Services Committee Republicans have asked the SEC to rescind its proposed rule to change the definition of “exchange.” In a letter sent to the securities regulator Tuesday ahead of the committee’s crypto-focused hearing, Republicans argued the proposed rule exceeds “statutory authority” granted to the SEC. \u201cThe proposed rule will stifle innovation and harm […]<\/p>\n","protected":false},"author":2,"featured_media":108477,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[5937,230,225,221,7832,227,226,228,229,60,223,9306,224,3444,222],"class_list":["post-108476","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-american-politics","tag-brave","tag-coinbase","tag-crypto","tag-crypto-exchanges","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-patrick-mchenry","tag-robinhood","tag-sec","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/108476","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=108476"}],"version-history":[{"count":1,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/108476\/revisions"}],"predecessor-version":[{"id":108478,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/108476\/revisions\/108478"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/108477"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=108476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=108476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=108476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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