SEC chairman says the agency would revisit changing the “Exchange” definition to target the Defi crypto sector
Gary Gensler openly said that the US SEC took a strict approach to target crypto companies, to ensure the safety of investors.
Gary Gensler is Chairman of the United States Securities and Exchange Commission (SEC). Over a couple of years, the SEC agency took strict action against several crypto companies. In Q1 2023, the SEC agency showed very strict action to target top-regulated crypto companies.
On 14 April 2023, The SEC agency announced through a press release that the SEC body is planning to revisit the “Exchange” definition change plan and also confirmed that the new definition will also push the Defi crypto sector under the regulatory boundary of this regulatory body.
The SEC chairman said that the majority of the crypto exchanges already fall under the SEC’s regulation boundary and they needed to comply with the SEC body to ensure the protection for investors.
“Investors in the crypto markets must receive the same time-tested protections that the securities laws provide in all other markets,” the SEC chairman said.
The SEC commissioner Hester Peirce, popularly known as Crypto Mom in the crypto sector, opposed the SEC’s release and said that the Commission’s plan is overly broad.
“The release makes everybody involved in the relevant blockchain ecosystem part of a ‘group,’ it creates significant ambiguity around what speech requires government pre-approval, which will unavoidably chill constitutionally-protected speech,” crypto mom said.
Hester also criticised the SEC agency through a Tweet, where she questioned whether she needed to register with the SEC to iron a T-shirt.
The majority of the crypto proponents noted that the SEC agency is blindly trying to target the crypto sector in absence of rules & regulations.
In particular, many Defi crypto traders said that the SEC agency failed to understand that no one can stop people from interacting with Defi platforms but still they are trying to cover Defi regulation under Securities law without any framework.
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