A new SEC proposal has a serious change hidden within its complex language.
Today Coin Center filed a comment letter with the Securities and Exchange Commission on its proposed rulemaking regarding the definition of ‘exchange’ and Alternative Trading Systems. Bottom line: The Commission’s proposed redefinition of “exchange” violates the First Amendment by requiring a license to speak–even of open source developers. It’s unconstitutional and they should change it. Our comment explains why the First Amendment arguments against the proposed rule are strong and why the Supreme Court is poised to rule against the SEC should it finalize this new rule as drafted. The proposed rule alters the definition of “exchange” (and therefore who must register) but it never mentions crypto or defi once in its 200 pages.
