TechFlow news, March 11 — According to IBTimes, SEC Acting Chairman Mark Uyeda said on Tuesday that the U.S. Securities and Exchange Commission (SEC) is considering revising the definition of "exchange," which could exclude cryptocurrency-related entities.
Uyeda, speaking at the International Banking Federation conference, pointed out that under Gensler's leadership, the SEC proposed rules that included "communication protocols" in the definition of an exchange but failed to clearly define the term. He described linking Treasury market regulation with cryptocurrency market oversight as a "mistake."
If the "communication protocol" clause is removed, protocols providing crypto services would no longer fall under the exchange definition. Coinbase Chief Legal Officer Paul Grewal criticized the proposal in 2022, warning it would have significant implications for decentralized finance (DeFi).
