Coinbase has urged the SEC to withdraw its proposed regulations on decentralized exchanges （DEXs）, arguing that the rules are “irrational” and would stifle innovation in the DeFi space.
Points
- Coinbase has formally requested the SEC to withdraw its proposed rule requiring DEXs to register as alternative trading systems.
- The exchange argues that the rule is based on flawed assumptions and could halt innovation in decentralized finance.
- Coinbase’s legal challenges extend beyond the SEC, involving disputes with the FEC and CFTC as well.
- The outcome of this clash could significantly impact the regulatory landscape for DeFi in the United States.
Coinbase, one of the largest cryptocurrency exchanges in the world, has once again found itself at odds with U.S. regulators, this time challenging the Securities and Exchange Commission （SEC） over its proposed rules on decentralized exchanges （DEXs）. In a letter addressed to the SEC, Coinbase Chief Legal Officer Paul Grewal urged the commission to withdraw its January 2022 rule proposal that would require DEXs to register as alternative trading systems （ATS）.
Grewal argued that the SEC’s rule is not only “irrational” but also based on flawed assumptions that fail to consider the unique characteristics of decentralized finance （DeFi）. He emphasized that the rule’s cost-benefit analysis lacks critical data and relies on unrealistic assumptions that could severely limit the growth and innovation of DeFi projects.
One of the key points raised by Coinbase is that the SEC’s proposal would impose burdensome requirements on DEXs, potentially stifling innovation and driving developers out of the United States. Grewal pointed out that this approach mirrors the SEC’s broader regulatory stance under Chair Gary Gensler, which has been criticized for overreaching its authority and applying traditional financial regulations to a rapidly evolving digital landscape.
Coinbase’s letter also references the recent demise of the Chevron deference, a legal doctrine that allowed courts to defer to regulatory agencies’ interpretations of ambiguous laws. Grewal suggested that this shift could lead to increased judicial scrutiny of the SEC’s actions, further weakening the commission’s ability to enforce the proposed rules.
Beyond its battle with the SEC, Coinbase is entangled in legal disputes with other U.S. regulatory bodies. The exchange is currently facing challenges from the Federal Election Commission （FEC） over allegations of campaign finance violations, as well as from the Commodities Futures Trading Commission （CFTC） regarding the interpretation of the Commodity Exchange Act.
These legal battles highlight the growing tension between the cryptocurrency industry and U.S. regulators, as the government seeks to establish clear guidelines for digital assets while the industry pushes back against what it views as overregulation. The outcome of Coinbase’s challenge to the SEC could set a precedent for how DeFi projects are regulated in the United States, with significant implications for the future of the industry.
解説
- Regulatory Tensions: Coinbase’s challenge to the SEC underscores the ongoing conflict between the cryptocurrency industry and U.S. regulators, particularly around how to appropriately regulate emerging technologies like DeFi.
- Impact on DeFi: If the SEC’s proposed rules are enforced, they could create significant barriers for DeFi projects, potentially pushing innovation outside the U.S. or into less regulated jurisdictions.
- Legal Landscape: The broader implications of this case could reshape the legal environment for digital assets in the U.S., influencing how regulators approach the rapidly evolving cryptocurrency and DeFi sectors.