The US SEC will re-evaluate the definition of "exchange" and may adjust the scope of crypto market regulation

Odaily Planet Daily News The SEC is reconsidering a proposal on the definition of "exchange" to explore whether to adjust the definition to exclude entities or companies involved in cryptocurrency transactions. This marks another adjustment in the SEC's crypto asset regulatory strategy. SEC Acting Chairman Mark Uyeda said at the International Bankers Association's annual Washington meeting that regulators are considering expanding the definition of "exchange" to include "communication protocols", but did not disclose specific details. He emphasized that it is a mistake to link the Treasury market regulatory framework with the regulation of the crypto industry, and has asked SEC staff to evaluate whether parts of the proposal should be abandoned. If the "communication protocol" section is ultimately deleted, protocols that provide crypto services or solutions may be excluded from regulation. Uyeda's statement is consistent with the earlier views of Paul Grewal, chief legal officer of Coinbase. Grewal warned in 2022 that the regulatory framework proposed by the SEC could have a profound impact on decentralized finance (DeFi). (IBTimes)