TechFlow news — Gabriel Shapiro, Legal Director at Delphi Digital, tweeted that Delphi Digital has submitted strong opposition to the U.S. Securities and Exchange Commission (SEC) regarding proposed amendments to Alternative Trading Systems (ATS). The amendment seeks to redefine all "communication protocols (AMMs)" as potential securities exchanges. Delphi Digital argues that treating AMMs as securities exchanges would impose impossible regulatory burdens on open-source developers (such as FINRA registration), and that the primary objectives of exchange regulation—such as fair access, public pricing, and auditability—are already inherently present within AMM architectures. Therefore, there is no need to classify AMMs as regulated securities exchanges.
Previously, the U.S. Securities and Exchange Commission proposed amendments to the Securities Exchange Act of 1934, planning to revise the definition of an exchange.
