The SEC Chairman plans to address cryptocurrency DEXs by updating regulations

ChainCatcher News, the U.S. Securities and Exchange Commission (SEC) is preparing to shift towards DeFi regulation as it reopens proposed regulations. In January 2022, the SEC proposed to expand the definition of "exchange" to cover a broader range of trading activities in the U.S. At that time, the agency stated in its proposed rulemaking that certain entities engaged in trading activities were not subject to exchange regulation, resulting in a "regulatory gap." The crypto industry views the proposal as an overreach of power, failing to provide sufficient clarity regarding its implications for legitimacy.

The SEC will vote on Friday to decide how to respond to this criticism. If approved, the updated proposal will incorporate DeFi into the expanded definition of regulated exchanges using clearer language and will detail its estimates of the costs this change is expected to impose on the industry. Specific changes will be announced later today after the meeting concludes and the vote takes place. (source link)