US SEC Plans To Turn To DeFi Regulation As It Reopens Proposed Regulations

The U.S. Securities and Exchange Commission (SEC) is preparing to turn to DeFi regulation as it reopens proposed regulations, The Block reports. In January 2022, the SEC said in its proposed rulemaking that certain entities engaged in trading activities would not be regulated by exchanges, creating a "regulatory gap." The crypto industry viewed the proposal as an excessive power grab that failed to provide sufficient clarity on its legal implications. The SEC will vote Friday on its response to the criticism. If approved, the updated proposal would use more explicit language to include DeFi in the expanded definition of regulated exchanges, and would detail its estimate of how much the change is expected to cost the industry. Specific changes will be announced after the meeting concludes and is voted on later today.