TechFlow reports that the U.S. House Financial Services Committee's GOP posted on X stating the SEC's final rule expanding the definition of "dealer" is overly broad and could harm market vitality, especially within the digital asset ecosystem.
The lack of clarity and insufficient consideration of implementation challenges exacerbate these issues, leaving market participants uncertain about their regulatory obligations and potentially disrupting markets.
The U.S. SEC should reconsider its final rule to ensure market stability and efficiency while fostering innovation.
Previous report: The U.S. Securities and Exchange Commission (SEC) adopted two rules bringing certain significant market participants under the dealer or government securities dealer framework. The SEC also requires market participants serving specific dealer functions—particularly those playing key roles as liquidity providers—to register with the SEC, become members of a self-regulatory organization (SRO), and comply with federal securities laws and regulatory obligations.
