SEC Faces Backlash Over Proposed Exchange Definition Changes from Financial Services and Blockchain Industry

Republicans on the House Financial Services Committee have sent a letter to the SEC demanding that it rescind its proposed rulemaking regarding the definition of "exchange," arguing that it exceeds the SEC's statutory authority and would push the digital asset ecosystem overseas. The lawmakers claim that the proposed rule would stifle innovation and harm digital asset market participants and the US economy more broadly, and that it runs contrary to the SEC's missions to protect investors and promote capital formation.