{"id":80230,"date":"2023-06-15T10:03:11","date_gmt":"2023-06-15T07:03:11","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=80230"},"modified":"2025-09-11T15:35:33","modified_gmt":"2025-09-11T12:35:33","slug":"coinbase-argues-in-sec-letter-that-dex-cannot-be-regulated-as-centralized-exchanges","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/coinbase-argues-in-sec-letter-that-dex-cannot-be-regulated-as-centralized-exchanges\/","title":{"rendered":"Coinbase argues in SEC letter that DEX cannot be regulated as centralized exchanges"},"content":{"rendered":"<p>Representatives of the cryptocurrency exchange Coinbase sent to the U.S. Securities and Exchange Commission (SEC) a <a href=\"https:\/\/www.sec.gov\/comments\/s7-02-22\/s70222-205079-412142.pdf\">\u043f\u0438\u0441\u044c\u043c\u043e<\/a>, in which they stated the impossibility of regulating <span data-descr=\"decentralized exchange\" class=\"old_tooltip\">DEX<\/span> as centralized exchanges.<\/p>\n<p>The company&#8217;s chief legal officer, Paul Grewal, said that the agency&#8217;s powers do not include the authority to ban decentralised platforms without clear authorisation from Congress.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Yesterday we filed a comment letter on the <a href=\"https:\/\/twitter.com\/SECGov?ref_src=twsrc%5Etfw\">@SECGov<\/a> proposed rule that seeks to expand the definition of exchange to include DEXs. Tl; dr: this proposal should NOT be adopted, and certainly not before completing the threshold steps for any rulemaking. 1\/11 <a href=\"https:\/\/t.co\/fBXAYiWb4W\">https:\/\/t.co\/fBXAYiWb4W<\/a><\/p>\n<p>\u2014 paulgrewal.eth (@iampaulgrewal) <a href=\"https:\/\/twitter.com\/iampaulgrewal\/status\/1669029818732617747?ref_src=twsrc%5Etfw\">June 14, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to him, last year the SEC attempted to implement a definition of a DEX &#8220;without public notice&#8221;.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Truly decentralised systems do exist, and there is no single organisation capable of bearing responsibility for compliance with the requirements. The proposed rule as applied to DEX would be an unenforceable requirement,&#8221; wrote Grewal.<\/p>\n<\/blockquote>\n<p>In his view, the Commission has not conducted a real economic analysis of the sector and instead &#8220;promotes its political preferences&#8221;.<\/p>\n<p>In June the SEC filed suit against leading cryptocurrency exchanges <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-binance-and-changpeng-zhao\">Binance<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-coinbase-exchange\">Coinbase<\/a>. In the latter, <a href=\"https:\/\/u1f987.com\/en\/news\/coinbase-says-it-will-not-change-its-business-model-amid-an-sec-lawsuit\">refused to change their business model<\/a> due to the regulator&#8217;s lawsuit.<\/p>\n<p>As Grewal noted, the agency&#8217;s approach to regulating the cryptocurrency industry is &#8220;undermining the competitiveness of the United States&#8221;.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Representatives of the cryptocurrency exchange Coinbase sent a letter to the U.S. Securities and Exchange Commission (SEC) stating the impossibility of regulating a DEX as centralized exchanges.<\/p>\n","protected":false},"author":1,"featured_media":80231,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[138,36,128],"class_list":["post-80230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-coinbase","tag-regulation","tag-sec"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=80230"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80230\/revisions"}],"predecessor-version":[{"id":80232,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80230\/revisions\/80232"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/80231"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=80230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=80230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=80230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}