The Cryptographic Society ACLUSS has submitted a letter to the United States Securities and Exchange Commission (SEC), expressing its concerns concerning the modifications proposed to the definition of “exchange” under the American federal laws on securities.
The company urges the agency to reconsider and withdraw this cryptographic regulatory decision. It should be noted that said decision will see the definition of “exchange” includes decentralized financing platforms (DEFI).
The request for consensys can increase DEFI on L2
In the letter, addressed to Commissioner Hester Peirce and the new working group on cryptography, Consensys noted that the proposed amendment constitutes a violation of the Act on Administrative Procedure (APA).
It badly widens the regulatory scope of crypto. The Metamask developer also cited how the rules are a contradiction of the American Constitution.
Apparently, this wrongly imposes on decentralized protocols which should not traditionally be classified as an exchange, expecting that they follow the exchange regulations.
In addition, Consensys stressed that the dry was excessive. For more context, the cabinet says that the proposed amendment exceeds the agency’s jurisdiction or legal authority.
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It should be noted that this is not the first time that this dry amendment meets a roadblock.
In 2022, when he asked for public comments on the proposal, there were many oppositions to the Defi Exchange amendment.
This period of comments from 2022 and some other previous submissions were referenced by consensys to strengthen its position on the issue.
Consensys ask to discuss the dry proposal with the Crypto Working Group
According to the lawyer for consensys, Bill Hudges, the crypto cabinet had previously highlighted some gaps in this amendment in two previous submissions.
Consensys strongly considers that this SEC amendment will have a negative impact on the development of blockchain and the definition of adoption.
For the perspective, the proposal would have the potential to stifle innovation and discourage creativity.
The existence of regulatory uncertainty could discourage developers and users in the blockchain space.
On this premise, consensys has hinted at its desire to discuss the question with the working group on crypto. Otherwise, it expects the rule proposed by the SEC to be erased from the regulatory agenda.
Dry to reject the Coinbase trial
There is no certainty that the dry will give in to the request of consensys. However, it should be noted that the creation of the crypto working group gives providers of digital asset services an advantage.
These cryptographic companies faced with a regulatory examination before Donald Trump became the President of the United States, may have final proceedings in their favor.
This is due to the introduction of more user -friendly policies in crypto in the new administration.
The American Cryptocurrency Exchange Coinbase has already won a legal debacle with the dry of the United States. This concerns the classification of titles of some of the assets negotiated on its platform.
The two parties concluded an agreement on February 21, 2025 to abandon the agency’s trial, pending an official vote by the SEC commissioners next week.
This was considered a victory for the general ecosystem of cryptography and could be largely attributed to the pivot in the landscape of American cryptography.
Contrary to what Gary Gensler directed the dry with a regulatory approach by application, Mark Uyeda brought a more favorable approach.
This new government has used the implementation of more pro-Crypto policies.
