Main to remember
- Consensys urges the dry to withdraw changes in the redefinition of “exchange” under American securities law.
- The cabinet maintains that the changes proposed exceed the regulatory authority and could suffocate blockchain innovation.
- The dry approach could force decentralized platforms to close or leave the American market.
Today, consensys have submitted an official request to the American Commission of Securities and Exchange (SEC), urging its working group on the crypto, led by Commissioner Hester Peirce, to remove the proposed modifications redefining “exchange” Under the American securities laws of its regulatory program. The company maintains that these changes represent an excessive excess of authority and lack sufficient legal earth.
The current debate returns to the amendments introduced for the first time at the beginning of 2022, seeking to extend the agency’s jurisdiction to decentralized financing platforms (DEFI).
Consensys argues that such changes would not only go beyond the agency’s statutory mandate, but also contradict the law on administrative procedure and the American Constitution. The company included two previous letters, subject in April 2022 and June 2023, to further highlight the legal and practical concerns concerning the proposal.
Impact on blockchain innovation
Consensys warns that the proposed definition of “exchange” would considerably extend regulatory monitoring, even affecting passive technological providers.
Under changes, blockchain systems mediating only among sellers and buyers would be the agency’s jurisdiction. Large range, supports the company, does not concern fundamental differences in stock market and decentralized networks.
Beyond legal problems, consensys also refer to the stifling effect that these rules would have on the innovation of blockchain in the United States by imposing strict provisions of conformity outside the scope of many decentralized exchanges; The dry may stimulate innovation abroad. The changes would involuntarily stimulate blockchain companies outside the country, contract for market and hinder technological innovation.
Cost-dispatches analysis of the dry under fire
One of the biggest discord is that the agency has not carried out an in-depth cost-effective analysis. Consensys argues that the agency has underestimated the number of parties affected by the change of rule and has not discussed more important impacts on the economy.
As part of the proposed regime, decentralized finance platforms, validators and software developers would be confronted with manslaughter, said the company.
In addition, the regulator was not explicit on how digital assets must be classified in the definition of security, and market players are left in regulatory uncertainty. The absence of explicit definitions, according to consensys, reflects the deep gaps in the project of modifications.
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