ConsenSys, Developer of MetaMask, Challenges SEC’s Proposed Definition of ‘Exchange’ Citing Blockchain Misunderstandings
Join Our Telegram channel to stay up to date on breaking news coverage ConsenSys, a blockchain technology startup, has formally opposed the Securities and Exchange Commission’s (SEC) Notice of Proposed Rulemaking (NPRM) regarding the redefining of a securities “exchange” through the counsel of Bill Hughes. The SEC made the proposal to categorize blockchain protocols as securities exchanges, a move that has since brought a lot of criticism from ConsenSys. According to ConsenSys, the amendments were potentially applicable to blockchain-based systems, even though the Proposing Release, which contains more than 200 pages, does not mention cryptocurrencies, blockchain technology, or their applications. The SEC’s modifications intend to apply to blockchain technologies, which ConsenSys claims would be illegal if made official in their current form. They assert that the reopening announcement improperly attempts to redefine exchanges in order to tighten broker...