Representatives of the crypto exchange Coinbase sent a letter to the US Securities and Exchange Commission (SEC) stating that it is impossible to regulate DEX as centralized exchanges.
The company’s general counsel, Paul Grewal, said the agency’s powers “do not include the power to prohibit [децентрализованные платформы] unless expressly authorized by Congress.”
Yesterday we filed a comment letter on the @SECGov proposed rule that seeks to expand the definition of exchange to include DEXs. Tl; dr: this proposal should NOT be adopted, and certainly not before completing the threshold steps for any rulemaking. 1/11 https://t.co/fBXAYiWb4W
— paulgrewal.eth (@iampaulgrewal) June 14, 2023
Last year, the SEC attempted to implement the DEX definition “without notice to the public,” he said.
“Truly decentralized systems do exist, and there is no single organization capable of being held accountable for compliance. The proposed rule for DEX would be an impossible requirement,” wrote Grewal.
According to the lawyer, the Commission “didn’t do a real economic analysis” of the industry and instead “promotes its own political preferences”.
In June, the SEC sued leading cryptocurrency exchanges Binance and Coinbase. The latter refused to change its business model due to a lawsuit filed by the regulator.
Recall, Grewal called the agency’s approach to regulating the cryptocurrency industry “undermining US competitiveness.”
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