Coinbase offered some ideas by sending a letter to the SEC about decentralized exchanges (DEX).
Coinbase has sent a letter to the US Securities and Exchange Commission, stating that DEXs will not be regulated like exchanges. It is unclear how the SEC will move with this letter from Coinbase.
Coinbase Submits A Letter To The SEC Regarding DEXs Explaining Possibility Of Regulating
Coinbase has sent a letter to the US Securities and Exchange Commission (SEC), stating that decentralized exchanges (DEXs) cannot be regulated like centralized exchanges.
Coinbase stated that it is impossible for DEXs to register in the same way as the national stock exchange. Coinbase Chief Legal Officer Paul Grewel pointed out that DEXs are difficult to regulate due to their decentralized nature.
Coinbase has argued that the SEC cannot ban the crypto industry, noting that an agency’s authority to ban a particular industry is subject to Congressional authorization. Grewel also stated that the SEC did not do any real economic analysis in the proposed regulations and used a patina of economic analysis to justify its policy choices. Coinbase rejects the SEC’s regulations on DEXs and states that it has a different view with the SEC on this matter.
