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The United States Securities and Exchange Commission (SEC) extended the comments period for its proposal to amend Rule 3b-16 of the Securities Exchange Act of 1934, which ended on June 13. Last-minute comments were filed by Republican members of the Blockchain Association and the House of Representatives Committee on Financial Services.
amendment proposal, which Run For Hundreds of Pages, was released in January 2022. It did not mention digital assets. was another long document Free When the comment period reopened. It addressed digital asset platforms. According to observers, the amendments could have a profound effect on the crypto industry, and they have garnered many negative reactions.
29 Republican Committee Members criticized Proposes to expand the definition of exchange so that it captures “a wide range of individuals (…) including software developers and participants in the consensus mechanism of a blockchain network,” and agency with the inclusion of “communications protocol systems” exceed the regulatory authority of , Ahead:
“It is unclear how a developer or any other person operating software critical to the functioning of a blockchain network can be in compliance with regulatory requirements for an exchange.”
The proposal is an example of the SEC’s hostility toward blockchain technology, the letter concluded, and advances SEC Chairman Gary Gensler’s personal views “without adequate analysis or justification.”
Related: SEC Pulls Back on Defining Digital Assets in New Hedge Fund Rules
The Blockchain Association has already submitted two sets of comments. In their latest letter, the advocacy groups argued The SEC is exceeding its authority by citing the leading question doctrine, which was recently affirmed by the US Supreme Court. The association also said that the broad language of the proposal could make validators part of the exchange, even if they operate in competition. According to the Blockchain Association, the proposal also raises freedom of speech concerns.
1/Today, @BlockchainAssn Filed a Comment Paper on the SEC’s Proposal Expanding the Definition of “Exchange” in Rule 3B-16.
tl;dr Doctor:
– Actual ban on DeFi
– Exceeding statutory authority
– APA Violation
– deeply flawed cost-benefit analysishttps://t.co/3UbnDbWWEV— Marissa Tushman Coppel (@MTCoppel) June 13, 2023
The Blockchain Association also said that the proposal is hostile to blockchain technology, despite claiming to be “technology neutral”, and that its cost analysis is flawed. Kristin Smith, CEO of the Blockchain Association, said in a statement:
“Instead of crafting fit-for-purpose regulations that recognize the unique nature of decentralized protocols and related entities, raising serious constitutional and APA (Administrative Procedure Act) concerns, the SEC is extending its jurisdiction beyond the limits originally set by Congress.” expands.”
Venture capital firm Paradigm and advocacy group Coin Center are among other organizations that have come out in opposition to the SEC proposal. SEC Commissioner Hester Pierce and Mark Ueda He has also expressed his opposition to the changes.
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