DEXs

Coinbase Chief Legal Officer: Disputes SEC's Expanded Definition of "Exchange"

ChainCatcher news, Coinbase's Chief Legal Officer Paul Grewal posted on social media that Coinbase today submitted an objection to the U.S. Securities and Exchange Commission (SEC) regarding its proposal to expand the definition of "exchange." The SEC's proposal lacks critical analysis, is based on unreasonable assumptions, fails to demonstrate the existence of issues that require regulation, and significantly exaggerates the benefits of the proposal. Here are the main points of concern:Lack of Economic Analysis: The SEC failed to collect basic information or conduct economic analysis to assess the impact of the proposal on decentralized exchanges (DEXs), yet continues to push its unreasonable assumptions;Potential Impact on DEXs: Coinbase emphasizes that the SEC should not extend the proposal to DEXs, as this could have significant implications for millions of Americans using digital assets and could harm innovation in the rapidly growing DEX market.Assumption of Issues' Existence: The SEC starts from the assumption that there are issues in the industry that need to be corrected but fails to prove the existence of such issues.Coinbase believes this is not the correct way to formulate rules, and the proposal should at least be withdrawn and revised. Ongoing Dialogue with the SEC: Coinbase expresses gratitude for the SEC's serious consideration of its comments and looks forward to further discussions on this important topic.
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