Coinbase Asks SEC to Reconsider DEX Rule

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In a letter, Coinbase CLO Paul Grewal urged the US Securities and Exchange Commission to scrap its proposed rule that would bring decentralized exchanges under its purview and start afresh.

The rule, which was first introduced in January 2022 and reopened for comments in April, aims to redefine the concept of an exchange to include decentralized exchanges.

This could potentially compel decentralized projects to register with the agency as alternative trading systems.

Several stakeholders, including lawmakers, the crypto industry, and traditional exchanges such as Nasdaq, have submitted their opinions on the matter through hundreds of comment letters over the years.

Grewal pointed out that the SEC‘s assumption that decentralized exchanges are capable of complying with the same regulations as traditional exchanges is “irrational.”