DeFi Concerns ConsenSys Challenges SEC Amendment

ConsenSys Opposes SEC’s Proposed DeFi Rule Change

• ConsenSys submitted a letter to the SEC, challenging proposed amendments to redefine “exchange” under U.S. securities laws.
• The company argues that the amendments exceed the SEC’s legal authority and violate the Administrative Procedure Act (APA).
• ConsenSys claims that the rule conflicts with the U.S. Constitution by imposing obligations on decentralized protocols.
• The proposed rule received significant opposition during a 2022 comment period.
• ConsenSys warns that these changes could hinder blockchain innovation and force DeFi platforms out of the U.S. market.

ConsenSys has urged the SEC to remove its proposed rule expanding the definition of an “exchange” to include DeFi platforms, citing potential negative impacts on blockchain innovation and legal overreach.