Coinbase Advocates Unregulated Status for DEXs in Letter to SEC
Coinbase Engages in Ongoing Dispute with SEC, Challenges Regulation of Decentralized Exchanges
In the midst of an ongoing public disagreement with the U.S. Securities and Exchange Commission (SEC), cryptocurrency exchange Coinbase submitted a new letter to the regulatory body on Monday. This time, Coinbase argued against a proposal aiming to regulate decentralized exchanges (DEXs) in a similar manner as their centralized counterparts.
Paul Grewel, the Chief Legal Officer of Coinbase, emphasized the impossibility of DEXs, such as Uniswap, adhering to the same registration requirements as national securities exchanges. In a Twitter thread, Grewel expressed his concerns regarding the proposed rules, stating, “This proposal is too flawed on process & substance to move forward.” He further criticized the SEC for making unsupported assumptions about its jurisdiction in the crypto sphere, suggesting that they were preemptively trying to influence potential future actions by Congress.
The dispute between Coinbase and the SEC continues to unfold, with Coinbase actively advocating for a different approach to regulating DEXs, highlighting the unique nature and decentralized structure of these exchanges.
Coinbase Challenges SEC’s Attempt to Regulate Decentralized Exchanges
Coinbase, the cryptocurrency exchange, which has been engaged in a protracted dispute with the U.S. Securities and Exchange Commission (SEC), recently submitted a new letter to the regulatory body opposing a proposal aimed at regulating decentralized exchanges (DEXs) in a manner similar to centralized exchanges.
Paul Grewel, Chief Legal Officer of Coinbase, stated on Tuesday that it would be impracticable for a DEX, such as Uniswap and others with a decentralized structure, to comply with the registration requirements applicable to national securities exchanges.
Expressing his concerns on Twitter, Grewel criticized the proposal, deeming it flawed in both process and substance. He further accused the SEC of attempting to preempt potential congressional actions by incorporating unsupported assumptions about its jurisdiction over cryptocurrencies into the proposed regulations.
The ongoing clash between Coinbase and the SEC continues, as Coinbase argues for an alternative approach to regulating DEXs, highlighting the unique characteristics and decentralized nature of these exchanges.
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