On February 21 2025, Consensys submitted a letter to Hester Peirce’s SEC crypto task force respectfully requesting the pending rulemaking that amends the definition of “exchange” under U.S. securities laws to apply to DeFi be removed from the regulatory agenda. Our view is that the rule reflects an unduly broad assertion of regulatory authority over blockchain technology, and that the comments the SEC has received through the notice and comment period, which initially opened in Spring 2022, persuasively establish the basis to set aside the amendments. Our submission attached as appendices two letters that Consensys submitted to the Commission in April 2022 and June 2023, respectively. They outline the major problems with the proposed amendments as we see them, which we summarized in the letter submitted today for the Commission's convenience.
We would be pleased to discuss our arguments with the Task Force further, as it is critical that the Commission understands precisely why the amendments go beyond its statutory mandate, are violative of the Administrative Procedure Act, and even violate the U.S. Constitution. We thank the task force and Hester Peirce for their consideration.
Read Consensys' letter to the SEC crypto tax force in full here.