Global DCA Response – US SEC Proposed Rule “Amendments to Exchange Act Rule 3b-16 Regarding Definition of an “Exchange”Renata Szkoda
Through this response to the US SEC “Global DCA Response – US SEC Proposed Rule “Amendments to Exchange Act Rule 3b-16 Regarding Definition of an “Exchange”, the Global DCA presented the following arguments…
- The Proposed Rules are a Surprise to the Digital Assets Industry and to Digital Assets Investors and are Contrary to the Message of the President’s Executive Order on Digital Asset Regulation.
- The Proposed Rules suffer from serious procedural defects as applied to the digital assets industry. Any attempt to apply the Proposed Rules to the industry without curing the defects would violate administrative due process.
- The proposed redefinition of “exchange” to cover “communication protocol systems” that “make digital asset securities “available for trading” is overbroad and unworkable. If adopted, it will produce numerous negative second-order effects.
- The Commission is either ignoring or attempting to abandon silently the settled meaning of the word “broker.” Even if the Commission has the authority to redefine the word “exchange,” its offering of the ATS as a less-intrusive option is not plausible for Communication Protocol Systems that do not “effect” trades.
The proposal then goes into provision of various alternative approaches which would be preferred by the industry to resolve the challenges identified through this Proposed Rule
Please CLICK below to read the full response!