Paradigm denounces the SEC's "incoherent" attempt to control decentralized exchanges
DEXs are not stock exchanges, claims Paradigm, a crypto-venture firm.
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Crypto venture capital firm Paradigm has criticized the U.S. Securities and Exchange Commission's attempt to redefine the term "exchange" — which, if accepted, would put decentralized exchanges under its purview.
On June 8, the company sent a 14-page long letter to SEC Secretary Vanessa Countryman regarding the regulator's proposed redefinition of the term "exchange" in the Securities Exchange Act of 1934.
>The SEC plans to revise the 89-year-old legislation to include decentralized exchanges (DEX) and decentralized finance (DeFi) in the definition of “exchange.” Since the term DEX contains the word "exchange", the SEC wants to treat it the same as a security or an exchange.
Today @paradigm commented on @SECGov's proposed redefinition of "exchange"
Through haphazard rulemaking, the SEC is inappropriately trying to bring crypto trading platforms, including DEXs, under its mandate and regulate them as stock exchangeshttps:// t.co/ibv2u1n9VU
— Rodrigue (@RSSH273) June 8, 2023Paradigm, however, argues that fundamental differences between DEXs and exchanges cause them to be treated as “exchanges” under the law as both “invalid and inconsistent.”
“So it appears that after suing Coinbase for failing to do the impossible – registering as a stock exchange when it was unable to do so – the Commission now intends to force the DEXes in the same choice of Hobson."
DEXs are not stock exchanges, claims Paradigm, a crypto-venture firm.
News
Join us on social networks
Crypto venture capital firm Paradigm has criticized the U.S. Securities and Exchange Commission's attempt to redefine the term "exchange" — which, if accepted, would put decentralized exchanges under its purview.
On June 8, the company sent a 14-page long letter to SEC Secretary Vanessa Countryman regarding the regulator's proposed redefinition of the term "exchange" in the Securities Exchange Act of 1934.
>The SEC plans to revise the 89-year-old legislation to include decentralized exchanges (DEX) and decentralized finance (DeFi) in the definition of “exchange.” Since the term DEX contains the word "exchange", the SEC wants to treat it the same as a security or an exchange.
Today @paradigm commented on @SECGov's proposed redefinition of "exchange"
Through haphazard rulemaking, the SEC is inappropriately trying to bring crypto trading platforms, including DEXs, under its mandate and regulate them as stock exchangeshttps:// t.co/ibv2u1n9VU
— Rodrigue (@RSSH273) June 8, 2023Paradigm, however, argues that fundamental differences between DEXs and exchanges cause them to be treated as “exchanges” under the law as both “invalid and inconsistent.”
“So it appears that after suing Coinbase for failing to do the impossible – registering as a stock exchange when it was unable to do so – the Commission now intends to force the DEXes in the same choice of Hobson."
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