- Crypto exchange sent a letter to the Securities and Exchange Commission
- It writes that DEX exchanges cannot be regulated as centralized
- A company spokesman said the SEC did not conduct a real economic analysis.
Cryptocurrency exchange Coinbase, which is in dispute with the SEC, sent letter to the Commission. His main thought was that decentralized exchanges cannot be regulated in the same way as centralized ones.
On Tuesday, June 13, Coinbase’s chief legal officer, Paul Gravel, said that decentralized exchanges like Uniswap cannot be listed in the same way as national securities exchanges. On his Twitter, he wrote:
“This proposal is too imperfect both in process and in substance to move forward. However, the SEC is trying to get ahead of Congress by including unreasonable assumptions about its jurisdiction in the field of cryptocurrencies in the proposed rules.
Also in the 8-page letter, Gravel wrote that the agency is doing things that are not part of its responsibility. He stated that the powers of the SEC, which is responsible for regulating the industry, do not cover the power to ban the industry without the express permission of Congress.
“Decentralized systems do exist and do not have a single organization to enforce compliance. Applying the proposed rule to DEX platforms would actually be an impossible requirement. The Commission did not conduct real economic analysis, but instead used wasteful economic analysis to justify its political preferences.” Grevel wrote.
In May, the chairman of the CFTC said that DEX exchanges could be regulated.