Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • SUBMIT
Crypto Flexs
Home»BLOCKCHAIN NEWS»The SEC’s new rules for dealers may limit liquidity providers.
BLOCKCHAIN NEWS

The SEC’s new rules for dealers may limit liquidity providers.

By Crypto FlexsFebruary 7, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
The SEC’s new rules for dealers may limit liquidity providers.
Share
Facebook Twitter LinkedIn Pinterest Email

The SEC is adopting more stringent compliance rules for large capital investors in the Treasury market, but some provisions appear to impact users of decentralized finance.

On February 6, the U.S. Securities and Exchange Commission (SEC) adopted two rules mandating that market participants engaging in significant liquidity providing activities comply with regulatory obligations and federal financial laws by registering with a watchdog and joining a self-regulatory body. I did.

First proposed in March 2022, the regulations aimed at strengthening Treasury market security include provisions related to crypto-asset securities. Once this bill goes into effect, Defi investors who provide more than $50 million in liquidity to automated market makers like Uniswap will fall under the SEC’s purview.

The SEC’s consideration of the rule resulted in a 3-2 vote, with Commissioners Hester Peirce and Mark Uyeda voting against the proposal. Commissioners Gary Gensler, Caroline Crenshaw and Jaime Lizarraga supported the idea.

The rulemaking is aimed at those that make money by buying low in the Treasury market and selling it high, creating additional regulatory confusion in other markets, including self-dealing funds, private equity funds and other crypto-asset securities.

Mark Uyeda, SEC Commissioner

Cryptocurrency advocates like the Blockchain Association and the DeFi Education Fund pushed back against the policy in a comment letter when the rule was first introduced. Miller Whitehouse Levine, CEO of the DeFi Education Fund, argued that the expanded definition of market dealer is too vague and leaves several unresolved concerns with DeFi protocols.

Commissioner Peirce asked how automated market makers (AMMs), which are essentially software, can register with the SEC and how many companies the new regulations will affect. Haoxiang Zhu, director of the SEC’s trading and markets division, said the proposal targets individuals who utilize decentralized software rather than the technology itself.

Zhu added that it is difficult to pinpoint which participants will be affected due to limited information and outright non-compliance by DeFi actors.

One of the reasons they don’t comply is because they don’t understand what our rules are. They can’t even figure out if we think something is a security.

Hester Pierce, SEC Commissioner

🚨This is a very important conversation at today’s SEC hearing where the SEC staff argues that the new broker-dealer rules will make all LPs in AMMs securities dealers subject to registration requirements. paraphrase @HesterPeirce Incisive questions for the staff below: 🚨

employee:
“AMM…

— _gabrielShapir0 (@lex_node) February 6, 2024

Follow us on Google News

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

OKX Ventures Invests in Accountability for Enhanced Financial Verification

October 30, 2025

The $19 billion cryptocurrency collapse: A catalyst for Bitcoin to reach $200,000 by 2025: Standard Chartered

October 25, 2025

DAOs are redefining corporations, but the law is not yet ready.

October 20, 2025
Add A Comment

Comments are closed.

Recent Posts

Radiant Capital hacker transferred 5,400 ETH to Tornado Cash: PeckShield.

October 31, 2025

Pioneering Data Sovereignty Through Real-World Utility And Cultural Heritage

October 31, 2025

$BALZ Brings The Meme Migration Home

October 31, 2025

By The End Of 2025, Everyone Should Know The Best Way To Increase Wealth.

October 31, 2025

Aster’s Rocket Launch Surpasses $1B In Trading Volume, As Nubila Joins With Over 6 Million $NB In Rewards

October 31, 2025

SBF’s

October 31, 2025

Open Miner Cloud Mining Revolutionizes Cryptocurrency Mining, Generating Up To $32,000 In Daily Profits.

October 31, 2025

Analysts predict a 1,500% rally when PEPE price reaches $0.00012.

October 30, 2025

Unibase (UB), Humanity (H), And ConstructKoin (CTK) Are This Week’s Crypto Winners As Decentralized Infra Shines

October 30, 2025

Let AI Work For You — Empowering Everyone To Profit From The Intelligence Era

October 30, 2025

NOWPayments Launches $0 USDT (TRC20) Network Fee Offer For New Partners

October 30, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Radiant Capital hacker transferred 5,400 ETH to Tornado Cash: PeckShield.

October 31, 2025

Pioneering Data Sovereignty Through Real-World Utility And Cultural Heritage

October 31, 2025

$BALZ Brings The Meme Migration Home

October 31, 2025
Most Popular

Solana client developer Jito announces end of ‘Mempool’ feature

March 9, 2024

Bank of Israel launches Digital Shekel Challenge

May 29, 2024

MicroStrategy’s ultimate goal is to become the best Bitcoin bank: Michael Saylor

October 13, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.