SEC reopens the debate on the notion of exchange: issues and controversies

Last year, the SEC proposed a definition of the notion of exchange. The latter was not at all unanimous, in particular for reasons of unconstitutionality, among others.

Comments on the definition of “exchange” received by June 13

Discussions on the choice of an updated definition of the term “Exchange” have been relaunched in the United States. The Securities and Exchange Commission (SEC) formalizedFriday April 14, the opening of a consultation on the subject.

Until June 13, the public is authorized to submit their proposals concerning this terminology to the regulator. A similar procedure, launched last year by the SEC, ended miserably in failure.

Indeed, the definition retained by the institution at the end of the process had aroused the reactions of several professionals. Unconstitutional for some, the definition in question had been considered general for others.

Too broad to achieve objectives, with significant risks of sabotaging the growth efforts of targeted sectors. For many indeed, by defining an exchange as being “any company that trades in treasury bills and other government securities under the umbrella of regulation”, the SEC targeted, without good cause, certain categories of companies.

Seeking Transparency and Oversight: The SEC and Crypto Exchanges

If the SEC resolves to reopen exchanges on the definition of what an exchange is, it is not without reason. Officially, she claims to want “strengthen transparency and oversight”.

Unofficially, the interpretation of its various interventions in the crypto market, for example, reveals a different intention. The SEC would like a kind of popular discharge to give credibility to its efforts to regulate crypto firms. This, while they decry, more and more openly, his policy, considered unsuitable.

Recent statements by SEC boss Gary Gensler are quite explicit. “Investors in cryptocurrency markets should enjoy the same proven protections that securities laws have for all other markets,” he said in a statement.

Remember that wanting to specify the content of the term “exchange” remains an important issue for the crypto industry. In any case, at least as decisive as the decision expected in the lawsuit between the SEC and Ripple.

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