SEC Reopens Comment Period on Proposed Amendments to Exchange Definition for Crypto Asset Securities

The SEC has released supplemental information and reopened the comment period for proposed amendments that reiterate the applicability of existing rules to platforms that trade crypto asset securities, including so-called “DeFi” systems. SEC Chair Gary Gensler believes that this information will help address comments on the proposal from various market participants, especially those in the crypto markets. The SEC is requesting additional public comment on all aspects of the proposal in light of the information provided in the reopening release with a comment period remaining open for 30 days after publication. Additionally, it was reiterated that all investors in the crypto markets are afforded the same protections that other markets receive and should be held to the same standards.