ConsenSys Challenges SEC's Exchange Definition for DeFi Platforms

user avatar

by Giorgi Kostiuk

2 years ago

The US firm ConsenSys has approached the SEC with a request to reconsider proposed changes to the definition of 'exchange' that impact DeFi platforms.

Impact of SEC Amendments on DeFi

In a letter to SEC addressed to Commissioner Hester Peirce and the newly formed Crypto Task Force, ConsenSys expressed concerns over the proposed amendment, which might breach the Administrative Procedure Act. The amendment expands regulatory scope on crypto, contradicting the US Constitution. ConsenSys argues decentralized protocols should not be categorized as exchanges and thus should not follow exchange regulations. The firm claims the SEC is overstepping its jurisdiction with this proposal. This isn't the first time the amendment meets opposition, as there was significant resistance during the 2022 public comment period.

ConsenSys Proposes Dialogue with Crypto Task Force

ConsenSys' lawyer Bill Hudges noted the firm previously highlighted shortcomings of the amendment in two earlier submissions. ConsenSys strongly believes the SEC amendment will negatively impact blockchain development and DeFi adoption. Regulatory uncertainty could discourage developers and users. For this reason, ConsenSys has hinted at its willingness to discuss the matter with the Crypto Task Force or expects SEC's proposed rule to be removed from the agenda.

Coinbase Case Against SEC and Regulatory Shifts

There is no certainty that the SEC will comply with ConsenSys' request; however, the establishment of the Crypto Task Force provides digital asset providers certain advantages. This is evident with Coinbase, which reached an agreement with the SEC on February 21, 2025, regarding securities classification of assets on its platform. This is a significant step for the crypto ecosystem, highlighting changes in SEC policy under Mark Uyeda's leadership and shift to a more friendly approach towards cryptocurrencies.

ConsenSys actively voices its concerns over the SEC amendments, proposing a discussion with the Crypto Task Force, which may influence the future of DeFi and the crypto industry as a whole.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Micron MU Stock Price Surges Past 1000 Mark

Micron MU stock has reclaimed the 1000 price level, closing significantly higher amid a sector-wide resurgence.

user avatarEmily Carter

Grayscale's Zcash ETF to Implement 3-for-1 Forward Share Split

Grayscale has announced a 3-for-1 forward share split for its Zcash ETF, ticker ZCSH, to enhance accessibility for retail investors.

user avatarTomas Novak

Growing Interest in BRICS Membership

Many countries are expressing interest in joining the BRICS alliance, according to Russian Foreign Minister Sergey Lavrov.

user avatarKaterina Papadopoulou

XRP's Technical Indicators Point to Potential Bullish Momentum

XRP's technical indicators suggest a possible bullish crossover, despite a bearish death cross setup.

user avatarMaya Lundqvist

Crypto Market Sees Recovery as Bitcoin Surges Above 80,000

Crypto traders are feeling more optimistic today as Bitcoin has climbed back above 80,000 after a tough period marked by a Federal Reserve rate hike and a Senate vote against the Clarity Act.

user avatarLeo van der Veen

US Treasury Targets BitBank in Sanctions Evasion Crackdown

The US Treasury has sanctioned BitBank, an Iranian exchange involved in facilitating Bitcoin payments for shipping companies in the Strait of Hormuz.

user avatarLi Weicheng

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.