New SEC Proposal Could Hurt the Crypto Industry, Commissioner Peirce Cautions
A commissioner with the U.S. Securities and Exchange Commission (SEC) has voiced concerns regarding a new proposal that could give the securities regulator new powers to regulate cryptocurrency platforms and decentralized finance (defi) protocols.
The proposal includes very expansive language, which, together with the chair’s apparent interest in regulating all things crypto, suggests that it could be used to regulate crypto platforms.
The pro-bitcoin commissioner stressed that “The proposal could reach more types of trading mechanisms, including potentially defi protocols.”
The securities watchdog claims that the proposal is meant to close a “regulatory gap” created by market participants using platforms that are not registered as exchanges or brokerages to trade all types of securities. SEC Chairman Gary Gensler said last week that it would “promote resiliency and greater access in the Treasury market.”
The proposal is now open for public comments. The SEC must hold another vote before the regulations become final.
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