When it comes to the SEC’s proposed definition change, Coinbase is the latest business to voice opposition.
Public comments to the SEC, which had been reopened in April, were due on Tuesday. The SEC voted to broaden the definition of “exchange” in 2022. The SEC said in April that it would reopen the proposal’s comment period so that it could include DeFi and cryptocurrencies.
At the time, Gary Gensler, the chairman of the Securities and Exchange Commission, said that the action will “help address feedback on the plan from diverse market players, notably those in the crypto markets.
The SEC launched a complaint against Coinbase last week, claiming the cryptocurrency exchange was providing unregistered securities via its website.
According to a letter issued by Coinbase to the SEC, the company cited Supreme Court precedent in arguing that an agency has the ability to outlaw a sector just because it regulates it.
On Tuesday, Coinbase voiced opposition to the SEC’s proposed amended definition of exchanges, which would include crypto and DeFi explicitly along with conventional financial market makers. Coinbase has expressed worry about the potential effects of the plan on decentralized exchanges (DEXs). As a DEX, “the proposed rule would be just such an impossible requirement,” Coinbase argued.
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