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

US Treasury Department Moves to Cut MEXC Global from Financial System

The US Treasury Department has taken action against MEXC Global, a cryptocurrency exchange, to sever its ties with the American financial system due to accusations of facilitating over $16 billion in illicit transactions linked to Iran, North Korea, and Russia.

user avatarLucas Weissmann

Political Fallout from Ueno Bank Crisis in Paraguay

The Ueno Bank crisis has triggered significant political repercussions in Paraguay, including the resignation of President Santiago Peña and potential impeachment proceedings.

user avatarFilippo Romano

Greece Enhances Crypto Tax Transparency Measures

Greece will implement new reporting and documentation requirements for cryptocurrency purchases starting in 2027 to ensure funds come from declared income or lawful sources.

user avatarTomas Novak

Greece Introduces 10% Tax on Crypto Investment Profits

Greece introduces a 10% tax on individual crypto investment gains starting January 1, 2027.

user avatarEmily Carter

Gnosis Pay Implements Enhanced Security Measures Following Breach

Gnosis Pay has implemented enhanced security measures, including 3D Secure for online payments and increased fraud monitoring, following a data breach.

user avatarMaya Lundqvist

Gnosis Pay Reports Data Breach Affecting Customer Information

Gnosis Pay reported a data breach where hackers accessed customer information through its card system, prompting immediate containment measures.

user avatarKaterina Papadopoulou

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.