Gensler Takes on Crypto DeFi Exchanges With Refreshed Rules (1)

The US Securities and Exchange Commission on Friday altered a proposed rule to make more explicit that digital-asset exchanges and decentralized-finance platforms must register with the regulator.

The SEC’s plan, which was first proposed in 2022, is meant to close a regulatory gap created by platforms that offer trading in securities but don’t register as exchanges or brokerages. The agency’s revised plan adds language specific to digital assets, many of which the regulator says fall under its purview.

Even though the SEC’s original proposal didn’t mention crypto, it was widely seen as applicable to digital assets. That ambiguity led to ...