The US Securities and Exchange Commission (SEC) has extended the comment period on its proposed amendment to Rule 3b-16 of the Securities Exchange Act of 1934, which ended on June 13. The Blockchain Association and Republican member services of the House Finance Committee submitt ed last-minute comments.
The hundreds of pages of amendments will be published in January 2022. It doesn't mention digital assets. When the comment period reopened, another lengthy document was released. It does solve the digital asset platform problem. According to observers, these amendments could have a profound impact on the crypto industry and trigger many negative reactions.
Twenty-nine Republican committee members criticized the proposal to broaden the definition of an exchange so that it “could cover a wide range of individuals, including software developers and participants in blockchain network consensus mechanisms,” and potentially go beyond that. The agency's regulatory scope includes the purview of "communication protocol systems". Also: "It is unclear how developers, or anyone else who operates software critical to the functioning of blockchain network, would comply with the exchange's regulatory requirements."
The proposal is an example of the SEC's hostility to blockchain technology, the letter concluded, and offered SEC Chairman Gary Gensler's personal opinion "without sufficient analysis or reason." The Blockchain Association has submitted two sets of comments. In a recent letter, the advocacy The group argued that the SEC is overreaching its powers, citing a major issue doctrine recently affirmed by the US Supreme Court. The association also said the proposal's broad language could make validators part of exchanges even if they operate in competition. al also raises concerns about free speech, according to the Blockchain Association. The Blockchain Association also stated that despite the proposal's claim to be “technology-neutral,” the proposal is hostile to blockchain technology and its cost analysis is flawed.Blockchain Association CEO Kristen Smith said in a statement:
“Rather than crafting fit-for-purpose rules to identify the uniqueness of decentralized protocols and related entities, the SEC has expanded its jurisdiction beyond the limits originally set by Congress, while raising serious constitutional and APA [Administrative Procedure Act ] question." Other groups opposing the SEC proposal include venture capital firm Paradigm and advocacy group Coin Center. SEC Commissioners Hester Peirce and Mark Uyeda also voiced opposition to the changes.
