Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
In a care[...]
Communication protocol systems: SEC’s big DeFi move
Protocol | Tomio Geron | Feb 28, 2022
Gary Gensler has been talking about taking on the crypto industry since he started last April. Now he’s getting down to business. The SEC is taking on the crypto industry in a way that could have far-reaching implications, particularly for DeFi, by expanding the agency’s regulatory authority over decentralized trading systems. The potential mechanism is a rule quietly proposed in January that would expand the definition of an “exchange” to include “communication protocol systems.”
“It’s the biggest, most profound rule-making the SEC has ever had,” said Nicholas Losurdo, a partner at law firm Goodwin who previously worked at the SEC. “It has the ability to sweep in a lot of DeFi and crypto, whereas now they don’t have jurisdiction.”
See:
SEC Considering 50 Rule Changes: “One of the largest regulatory agendas in years”
SEC Regulation: Constructing a Crypto Regulatory Framework – New Tech, Old Rules
The comment period on this proposal is still open, but some crypto industry officials are concerned enough that they’ve called on the SEC to extend its comment period to 90 days so that more industry participants can give comments.
This change in definition could mean regulating not just centralized crypto entities but even decentralized finance protocols, according to Losurdo.
[The 654-page proposal] makes key changes, such as changing the definition of an “exchange function” to bringing together people who interact, instead of just “orders” as it was before. This broadening of the scope of what an exchange is could pull in a range of crypto products, Losurdo said, since the SEC document says that it applies to “trading any type of security.” And Gensler has been clear that he believes that many digital assets are in fact securities.The SEC is already trying to get more of the crypto world under its purview. So far it’s a mixed bag.
See: Top Crypto Lawyer says Don’t wait for the SEC
It has gone aggressively after crypto lending, recently settling with BlockFi for $100 million. But that involved a centralized lending operation. It’s not clear how the SEC would pursue truly decentralized lending, or more complex operations like staking.
Continue to the full article --> here
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
 |  |  |
Support NCFA by Following us on Twitter!Follow @NCFACanada  |
Related Posts
China’s Alibaba bringing online payment platform AliPay to Canada- Sounds like a DAO, Looks like a DAO: Introducing the Modern Digital Organization
- Interac and many of Canada’s leading financial institutions enhance Interac e-Transfer to introduce instant digital payments for businesses
- Flapjacks anyone? Stacking Stacks Can Earn Passive Yield in Bitcoin
- The Online Betting Industry Continues to Grow in Canada
- The Canadian Marketplace Lenders
Leave a Reply