The SEC’s New Proposal to Redefine ‘Dealer’ Could Spell Bad News for DeFi

A new proposal by the U.S. Securities and Exchange Commission (SEC) aims to redefine what it means to be a securities dealer – a move industry experts say could cripple the decentralized finance (DeFi) industry.

A new proposal by the U.S. Securities and Exchange Commission (SEC) aims to redefine what it means to be a securities dealer – a move industry experts say could cripple the decentralized finance (DeFi) industry.

The proposal would expand the definition of “dealer” to include people and businesses that use automated and algorithmic trading technology to execute trades and provide liquidity in the market.

While the proposal is, at least ostensibly, aimed at electronic traders of U.S. Treasurys – an issue the SEC has been wrestling with since at least 2014 – a footnote buried in the 200-page text says the proposed rule would also apply to digital assets that have been deemed to be securities.

Read this article on CoinDesk

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