Regulatory amendments to the Securities Act concerning the regulation of automated trading systems (ATS) may threaten the operation of DeFi platforms. This was stated by SEC Commissioner SEC Hester Peirce, Bloomberg reports.
The official warned about ‘extremely broad’ formulations in the document that could give the agency broad powers to oversee digital asset platforms. Yet in the 654-page plan, focused on ATS trading in stocks, U.S. Treasuries, and agency securities, cryptocurrencies are not mentioned once.
“The amendments could cover more types of trading mechanisms, including potentially DeFi protocols,” she explained.
Peirce opposed sending the document to public comment. SEC Chairman Gary Gensler and two of his colleagues voted in favor of “strengthening resilience and expanding access to the government bond market.”
The Commission justified publishing the amendments by the aim of closing a regulatory gap arising from the emergence of platforms that are not registered as exchanges or brokers. If approved, such “communication-protocol systems” would require registration with the SEC.
Earlier, in January, Gensler expressed hope, that in the coming months digital-asset trading platforms would take steps to be regulated more concretely by the agency.
In 2021, Gensler urged Congress to develop a regulatory framework for Bitcoin exchanges and expand investor-protection rules to platforms.
He invited trading venues to engage in dialogue with the SEC.
In his view, regulation is necessary for the survival of cryptocurrencies. The Commission does not plan to ban digital assets.
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