SEC To Reconsider Definition Of 'Exchange' That A Coinbase Executive Previously Criticized

The SEC is reconsidering a proposed rule change under Gary Gensler that could have included "communications protocols" in the definition of "exchange." (Credit: Alesia Kozik/Pexels.com)

KEY POINTS

• Uyeda on Monday criticized a proposal to include 'communications protocols' when defining 'exchange'
• He said it was a 'mistake' to link Treasury markets regulation and regulating the crypto sector
• The SEC is now rethinking the possibility of 'abandoning' the expanded definition that includes crypto

The U.S. Securities and Exchange Commission (SEC) will assess whether a proposal that determines the definition of an "exchange" can be modified to exclude entities or firms that allow cryptocurrency transactions, marking yet another shift in the new SEC's approach toward crypto and digital assets.