Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how Coinbase have called out the SEC over their proposal to broaden the definition of 'exchanges.'
Coinbase Calls out SEC
Cryptocurrency exchange Coinbase have called out the SEC for overreaching, noting how they have included DEX's in their latest definition of an exchange. Coinbase consider this a major misstep, and they have officially opposed the recent proposal of the U.S. Securities and Exchange Commission (SEC) to broaden the definition of exchanges. Coinbase’s Chief Legal Officer, Paul Grewal, criticized the SEC for including Decentralized Exchanges (DEXs) in the new definition without adequate analysis.
Coinbase has called the blanket labelling from the U.S. SEC to including DEX's as trading platforms to be a flawed proposal, with a lack of essential analysis. They also noted it is based on irrational assumptions. Grewal noted how the SEC need to demonstrate a genuine need for the proposed regulation and has exaggerated the purported benefits.
Coinbase have noted that the SEC did not collect basic information or conduct an economic analysis on how the proposal would impact decentralized exchanges (DEXs), yet proceeded with the proposal based on unsubstantiated assumptions. The exchange has warned that if the power of the SEC extends to DEX's then it will have severe consequences for millions of Americans engaged with digital assets and stifle innovation within the growing DEX market. Coinbase stated:
“At a minimum, the proposal should be withdrawn and corrected.”
The exchange have emphasised that there is need for careful consideration in their comments but have expressed a willingness to continue discussions on this significant issue.
Have a great day.
Peace. CryptoGod-1.
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