DeFi Education Fund sent one letter to Securities and Exchange Commission I request that rules be made regarding DeFi (Decentralized Finance).
DeFi Education Fund is a Non-profit organization advocating for regulatory clarity and research regarding the DeFi industry. The group was founded in 2021 with a management bid. Uniswap ecosystem.
The letter is like this a statement In a statement regarding DeFi activities by the SEC Division of Markets and Trading, the division stated that certain software user interfaces used for crypto trading are not required to register as broker-dealers. This impacts sites or apps that connect to DeFi protocols or their own custodial wallets and are not required to register as brokers, effectively giving the green light for activity to continue.
The letter, signed by numerous digital asset support groups, including the Digital Chamber, calls on the Commission to build on disclosure through notice-and-comment rulemaking.
“In particular, the Commission should consider adopting a principles-based framework that provides clear and objective criteria, reiterating the criteria in the Notice for situations where activity falls within the definition of “broker.” Finalizing these principles would provide the legal certainty needed to support responsible innovation while preserving the Commission’s ability to regulate intermediaries that pose the risks that the broker-dealer regulatory regime is designed to address. Such rulemaking would support the activities of other infrastructure providers, including validators, API and RPC providers, data and communications networks, oracles and cloud services, all of which play important roles in blockchain innovation and performance, but do not engage in brokerage or transaction activities. This will also help eliminate the need for interim guidance and allow developers and others to confidently build and implement compatible systems over the long term.”
Led by Chairman Paul Atkins, the SEC supports digital asset innovation and Fintech in general. This contrasts with the previous administration, which sought to undermine digital asset development and thus missed the opportunity to play a key role in the future of financial services. Industry participants played a key role in creating new crypto-related rules as the Commission took a hands-on, interaction-friendly approach to enable the development of crypto.
Meanwhile, crypto market infrastructure legislation, the CLARITY Act, has been stalled in the Senate as the banking industry declines for fear of greater competition and potential revenue declines if the industry fails to comply.
