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 Cache 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, caches will be stored in your inventory and can be opened with Keys.

Other news

AI Researchers Reduce Quantum Attack Resource Benchmark by 86 Times

chest

Researchers have reduced the computing resources needed for a potential quantum attack on Bitcoin and Ethereum by 86 times.

user avatarJesper Sørensen

Regulators Urge Faster Cybersecurity Measures in Banking Sector

chest

Regulatory bodies are urging banks to adopt quicker patching and incident response strategies to combat evolving cyber threats.

user avatarRajesh Kumar

Advanced AI Accelerates Cyberattack Risks for Banks

chest

A new paper highlights the increasing threat posed by advanced AI to banks' cybersecurity, emphasizing the need for faster software repairs.

user avatarLucas Weissmann

US Stock Market Faces Turmoil Amid Rising Bond Yields and Oil Prices

chest

The US stock market is facing significant declines due to rising bond yields and increasing oil prices, influenced by geopolitical tensions.

user avatarFilippo Romano

Zoomex Launches World Trading Championship 2026 with Record Prize Pool

chest

Zoomex announces the launch of the World Trading Championship 2026 with a record prize pool of 5,000,000 USDT, featuring an expanded multi-asset competition format.

user avatarEmily Carter

Meta Platforms' Shares Surge Following AI Assistant Launch

chest

Meta Platforms' shares rose over 6% after the launch of its AI assistant, Muse, which helps users manage tasks and goals.

user avatarTomas Novak

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.