Crypto prices were generally motionless this week as losses from the previous two weeks stalled. Talk of a potential Twitter takeover by Tesla CEO Elon Musk also fizzled. For the most part, it was back to normal, as people reflected on oncoming crypto regulations and shared industry gossip.
On Monday, Coinbase Chief Legal Officer Paul Grewal responded to the U.S. Securities and Exchange Commission’s proposal to expand the definition of “exchange.” The proposal was published in January, and it expands the definition of an exchange to include “systems that offer the use of non-firm trading interest and communications protocols to bring together buyers and sellers of securities.” Grewal felt that needed clarification.
Also at the outset: under the proposed change, the definition of exchange could be read to include DeFi platforms (if they traded securities). But oddly the SEC’s analysis doesn’t discuss this market or how the rule change could affect it. #3
In his ensuing thread, Grewal accused the SEC of “going beyond its authority under the Exchange Act” and noted that “the proposed definition is so broad that it could potentially encompass several types of systems that are in no way ‘generally understood’ to perform the functions of a stock exchange.”