The U.S. Securities and Exchange Commission (SEC) has received a letter from the cryptocurrency exchange Coinbase claiming that the DEX cannot be controlled.
The statement continues by saying that decentralized exchanges are not subject to the same laws as centralized exchanges, which were established by the relevant authorities, but they do not fall under the same category. This relates to the ongoing conflict that appears to be developing between the SEC and Coinbase.
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According to Paul Grewel, the Chief Legal Officer at Coinbase, it does not appear logical to believe that the method used for national securities exchanges to register themselves will also be applicable in the case of an entity such as Uniswap, which is a decentralized exchange, also known as a DEX. He also took to Twitter to express his displeasure with the SEC’s proposal, sending a strongly worded statement of full disagreement. In his opinion, the SEC is exceeding its judicial authority by making such unreasonable proposals.
In the 8-page letter, he goes on to add that the SEC’s responsibility to come out with regulatory bindings pertaining to a particular industry does not in any way mean that they also have the right to close the industry down. According to various Coinbase exchange reviews, bringing about regulatory bindings on DEX will prove to be completely impossible and uncalled for. He also shared the view that the agency is not able to justify its proposal due to a lack of understanding.
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Additionally, he stated that the Commission had only put on the cloak of economic analysis to support its preferred policy decisions rather than actually conducting one.
