CryptoWallCity vs MEXC Exchange

Coin Center says Proposal to amend SEC definition of ‘exchange’ is unconstitutional

Coin Center believes that the SEC’s controversial proposal to redefine the definition of “exchange” is illusory.

The SEC recently introduced a proposal to redefine the definition of “exchange” in the Securities Exchange Act in an effort to “include systems that allow the use of communication protocols and non-public exchange rates.” company to bring together buyers and sellers of securities”. Coin Center has vehemently opposed this controversial proposal, calling the regulator’s move “unconstitutional“.

The Washington-based nonprofit focused on cryptocurrency policies, Coin Center, has reportedly submitted a letter of comment to the U.S. Securities and Exchange Commission (SEC). According to the crypto lobbyist, the committee’s proposal violates the First Amendment of the United States Constitution due to the requirement for a license to speak, even for the open source developers of the project in the ecosystem.

“The proposal is unconstitutional and they should change it”

Cryptocurrency lobbying institutes and groups reject the SEC’s proposal amid tightening scrutiny of the country’s regulators.

Last month, the agency published an Amendment to the definition of “transaction”. Many experts believe that they are looking to bring the cryptocurrency sector and most importantly the decentralized finance sector into the regulatory sphere, thus significantly redefining the risk profile of operating a project in America.

Given that the proposal would be detrimental to developers, publishers, and republishers, Coin Center’s comment letter states:

“The SEC’s new proposal introduces a serious change hidden in complex language. The bottom line: The proposal violates the First Amendment when it comes to asking for a license to speak — even for open source developers. It’s unconstitutional and they should change. Coin Center is vehemently protesting.”

Narrowing the definition of “exchange”

The nonprofit’s director of research Peter Van Valkenburgh said the proposal was “unconstitutional” and should be withdrawn by the SEC.

The regulator’s interpretation of “exchange” was deemed inappropriate as the 200-page document did not mention cryptocurrencies or DeFi even once. Coin Center also cites previous Supreme Court (SC) precedent, potentially forcing the SEC to withdraw the proposal if it adopts the new rule as drafted.

Coin Center also stated that the committee should narrow down the definition of “exchange” before finalizing the proposal to true professional conduct. Failure to do so could significantly limit protected speech rights and stifle innovation in the country, in addition to facing a Court that the lobbyist believes is “ready to demonstrate the rights freedoms provided for in the First Amendment”.