The proposed amendment to the term “stock market” in the U.S. Securities and Exchange Commission’s (SEC) Securities Exchange Act of 1934 is unconstitutional. This view was expressed in the organization for the promotion and protection of the interests of the Coin Center industry.

Today, Coin Center made a comment explaining why the First Amendment arguments against the rule are strong and why the Supreme Court is ready to rule against the SEC if it drafts this new rule. https://t.co/V3bJNPte0v2/

— ɥƃɹnquǝʞןɐΛ ⚖ (@valkenburgh) 14 April 2022

The organization pointed out that the regulator’s initiative was written in “difficult language”. The SEC proposes to change the terms “combine orders” and “use methods” to “join buyers and sellers” and “make communication protocols available” for trading.

In the briefing, the agency said that “communication protocol systems” must be brought into line with current registration requirements because “market participants using these systems do not enjoy the same investor protections and fair and orderly market principles that apply to those already registered. exchanges.”

“This proposal aims to address the regulatory gap and existing differences affecting the competitive balance between similar securities markets,” the Commission said.

According to the Coin Center, organizations entering the updated period will need to register with the SEC. The changes will affect “everyone who writes or distributes software,” said Peter Van Valkenburgh, the firm’s director of research. [для децентрализованных бирж]At the same time, the agency is not talking about DeFi or cryptocurrency.

The organization said the change could apply to a wide range of companies and threatens with “unconstitutional restrictions”. At the same time, the lack of direct mention of digital assets does not answer the question of whether the SEC plans to expand the statement to relevant trading platforms.

Coin Center urged the regulator to rethink the initiative. Its public comment will expire on April 18, after which the SEC will make a final decision.

Recall that in March, the organization for the promotion and protection of industry interests called the proposed innovation and threat to privacy. FinCEN Rules for regulating cryptocurrency transactions.