The US SEC will reassess the definition of "exchange" or adjust the regulatory scope of the cryptocurrency market

Odaily Planet Daily News: The SEC is reviewing a proposal regarding the definition of "exchange" and exploring whether to adjust the definition to exclude entities or companies involved in cryptocurrency trading. This marks another adjustment in the SEC's regulatory strategy for cryptocurrency. SEC Acting Chairman Mark Uyeda stated at the International Bankers Association's annual Washington conference that regulators are considering expanding the definition of "exchange" to include * * "communication protocols," but did not disclose specific details. He stressed that it was a mistake to link the regulatory framework of the treasury bond market with the regulation of the encryption industry, and asked the SEC staff to evaluate whether part of the proposal should be abandoned. If the "communication protocol" section is ultimately removed, protocols that provide encryption services or solutions may be excluded from regulatory scope. Uyeda's statement is consistent with the views previously expressed by Paul Grewal, Chief Legal Officer of Coinbase. Grewal warned in 2022 that the regulatory framework proposed by the SEC could have far-reaching implications for decentralized finance (DeFi). （IBTimes）