The U.S. Securities and Exchange Commission (SEC) recently announced the adoption of two rules aimed at enhancing safety in Treasury markets. While these rules primarily target large capital investors, they also have implications for users of decentralized finance (Defi).

Key Points:

  • Market participants engaging in substantial liquidity-providing activities must register with the SEC and join a self-regulatory organization.
  • Defi investors providing over $50 million in liquidity to automated market makers like Uniswap may come under SEC scrutiny.
  • The rulemaking has sparked pushback from crypto proponents and industry experts.

The SEC’s decision, finalized through a 3-2 vote, has raised concerns among stakeholders. Commissioner Hester Peirce and Mark Uyeda opposed the rules, while Commissioners Gary Gensler, Caroline Crenshaw, and Jaime Lizarraga supported them.

Crypto proponents, including the Blockchain Association and the DeFi Education Fund, have criticized the rules for their potential impact on Defi protocols. Miller Whitehouse Levine, CEO of the DeFi Education Fund, highlighted ambiguities in the expanded definition of market dealers.

Commissioner Peirce questioned the practicality of requiring automated market makers to register with the SEC, emphasizing the challenges faced by Defi actors in understanding regulatory requirements.

Overall, the SEC’s move to tighten compliance rules in Treasury markets has sparked a debate within the crypto community. Stay informed about further developments on Global Crypto News.

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