TechFlow news — On August 12, Coinbase Chief Legal Officer Paul Grewal posted on social media that Coinbase today filed detailed objections with the U.S. Securities and Exchange Commission (SEC) regarding its proposal to expand the definition of "exchange." Grewal stated that the SEC's proposal lacks critical analysis, relies on unreasonable assumptions, fails to demonstrate the existence of a problem warranting regulation, and significantly overstates the benefits of the proposal. Key concerns include:
- Lack of economic analysis: The SEC has failed to gather basic information or conduct economic analysis to assess the proposal’s impact on decentralized exchanges (DEXs), yet continues advancing its unfounded assumptions.
- Potential impact on DEXs: Coinbase emphasizes that the SEC should not extend this proposal to DEXs, as it could significantly affect millions of Americans using digital assets and may harm innovation in the growing DEX market.
- Assumption of problems: The SEC starts from the assumption that problems exist in the industry requiring correction, but has failed to prove such problems actually exist. Coinbase believes this is not the proper way to make rules, and the proposal should at least be withdrawn and revised.
Coinbase expressed appreciation for the SEC’s careful consideration of its views and looks forward to further discussion on this important matter.
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