Defi

DeFi

when

Gary

The SEC is adopting stricter compliance rules for large capital investors in Treasury Markets, but some provisions seem to impact decentralized finance users.
On Feb. 6, the U.S. Securities and Exchange Commission (SEC) <a href="https://www.sec.gov/news/press-release/2024-14" target="_blank" rel="noopener noreferrer nofollow">adopted</a> two rules mandating that market participants engaging in substantial liquidity-providing activities register with the watchdog and join a self-regulatory organization, thus complying with regulatory obligations and federal financial laws.
Initially proposed in March 2022 and geared toward bolstering Treasury market safety, the rules include provisions that speak to crypto asset securities. Defi investors providing over $50 million in liquidity to automated market makers, like Uniswap, will fall under the SEC’s purview if this legislation is enforced.
A 3-2 vote settled the SEC’s deliberation on the rules, with Commissioner Hester Peirce and Mark Uyeda opposing the proposal. Commissioners <a href="https://crypto.news/congressman-calls-for-gary-gensler-removal-sec-accountability-in-2024/" target="_blank" rel="noopener noreferrer nofollow">Gary Gensler</a>, Caroline Crenshaw, and Jaime Lizarraga supported the idea.
<blockquote class="wp-block-quote">
 This rulemaking targets proprietary trading funds, private funds, and others who make money by buying low and selling high in the Treasury market, while creating additional regulatory confusion in other markets, including crypto asset securities. <cite><a href="https://crypto.news/republican-commissioner-sec-should-consider-proposing-rules-to-regulate-crypto/" target="_blank" rel="noopener noreferrer nofollow">Mark Uyeda</a>, SEC commissioner</cite>
</blockquote>
You might also like: <a href="https://crypto.news/coinbase-challenges-secs-rejection-of-digital-asset-rulemaking-petition/" rel="noopener noreferrer nofollow"> Coinbase challenges SEC’s rejection of digital asset rulemaking petition </a>
Crypto proponents such as the Blockchain Association and the DeFi Education Fund pushed back on the policies in comments letter when the rules were first introduced. Miller Whitehouse Levine, CEO of the DeFi Education Fund, <a href="https://www.sec.gov/comments/s7-12-22/s71222-20131214-296907.pdf" target="_blank" rel="noopener noreferrer nofollow">argued</a> that the expanded definition of a market dealer was too ambiguous and left several unaddressed concerns regarding defi protocols.
Commissioner Peirce questioned how an automated market maker (AMM), essentially software, might register with the SEC and how many firms the new rules would impact. Haoxiang Zhu, the SEC’s director for the trading and markets division, said the proposal was aimed at individuals leveraging decentralized software rather than the technology itself.&nbsp;
Zhu added that limited information and sweeping non-compliance from <a href="https://crypto.news/cftc-to-focus-on-defi-market-to-address-potential-risks/" target="_blank" rel="noopener noreferrer nofollow">defi</a> actors made it difficult to pinpoint the participants who would be affected.
<blockquote class="wp-block-quote">
 One of the reasons they’re not compliant is they can’t figure out what our rules are. They can’t even figure out when we think that something is a security. <cite>Hester Peirce, SEC commissioner</cite>
</blockquote>
<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
 <blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 🚨Very important exchange from today's SEC hearing where SEC staff assert that the new broker-dealer rule will make all LPs in AMMs into securities dealers with a registration requirement. Paraphrase of <a href="https://twitter.com/HesterPeirce?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@HesterPeirce</a> 's incisive questioning of staff below: 🚨 Staff: "AMM is…— _gabrielShapir0 (@lex_node) <a href="https://twitter.com/lex_node/status/1754895992019644563?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">February 6, 2024</a>
 </blockquote>
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
 </div>
</figure>
Read more: <a href="https://crypto.news/commissioner-peirce-slams-secs-moving-goalposts-in-bitcoin-etp-approval/" rel="noopener noreferrer nofollow"> Commissioner Peirce slams SEC’s ‘moving goalposts’ in Bitcoin ETP approval </a>

SEC’s new rules on dealers could rope in defi liquidity providers

crypto.news

2024년 2월 6일에 게재된 다른 기사

Chainlink (LINK), Polkadot (DOT), Litecoin (LTC) Why This New Altcoin Is Set To Overtake Them All

Haru Invest executives nabbed in $826M Crypto Fraud

Engineers Working to Solve Solana Blockchain Major Outage

Ripple’s XRP “Poised for an Upswing” says Top Crypto Analyst, but Price Yet to Break Out

An Analyst With a Proven Track Record Shares His Top 3 2024 Bull Run Crypto Picks

Lido’s daily users rise 718% in 3 months: Will this help LDO’s growth?

무료 뉴스레터에 가입하여 매일 최신 암호화폐 소식을 받아보세요!