EddieJayonCrypto
7 Feb 24
The U.S. Securities and Exchange Commission has expanded its definition of a dealer to include those dealing in crypto securities, leading to potential consequences in the digital assets industry, particularly in decentralized finance (DeFi). The move has faced objections from industry insiders and ...
The U.S. Securities and Exchange Commission has expanded its definition of a dealer to include those dealing in crypto securities, leading to potential consequences in the digital assets industry, particularly in decentralized finance (DeFi). The move has faced objections from industry insiders and regulators, and the outcome of the legal battle over which cryptocurrencies meet the definition of a security could have significant implications.
The U.S. Securities and Exchange Commission (SEC) widened its definition of a dealer today to pull many more financial operations into its jurisdiction – including, as it warned in a footnote of its original proposal – those dealing in crypto securities. The move could have serious consequences in the digital assets industry, particularly in decentralized finance (DeFi). The SEC's description indicated that "The dealer framework is a functional analysis based on the securities trading activities undertaken by a person, not the type of security being traded." The outcome of the legal battle over which cryptocurrencies meet the definition of a security could have major implications in the debate over which firms count as dealers under this latest regulatory demand.
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