U.S. SEC Considers DeFi Oversight and Expanding Exchange Definition

The US Securities and Exchange Commission (SEC) has reopened a proposal from last year that would now explicitly target DeFi platforms for crypto transactions as exchanges that need to be regulated. The updated proposal now uses more direct language that includes DeFi in the widening definition of regulated exchanges, and it details its estimates on how much that change is expected to cost the industry. The SEC is poised to “reiterate the applicability of existing rules to platforms that trade crypto asset securities, including so-called ‘DeFi’ systems,” according to an SEC fact sheet outlining the changes.