SEC Reopens Comment Period for Proposed Amendments to Exchange Act Rule 3b-16 and Provides Supplemental Information
The SEC reopened the comment period for proposed amendments to the definition of 'exchange' to address crypto asset securities trading, including DeFi systems.
The SEC provided supplemental information and economic analysis regarding proposed amendments to Exchange Act Rule 3b-16. The commission's release emphasized that many crypto trading platforms already fall under the current exchange definition and must comply with securities laws. No specific fraud, dollar amounts, or criminal charges were cited in the announcement.
The Securities and Exchange Commission (SEC) has reopened the comment period for proposed amendments to the definition of 'exchange' under Exchange Act Rule 3b-16. Originally proposed in January 2022 and reopened in May 2022, the comment period was set to close on June 13, 2022. The supplemental release provides economic analysis for systems that would be included in the new definition, specifically targeting crypto asset securities trading and DeFi systems. SEC Chair Gary Gensler noted that many existing crypto platforms already have a duty to comply with existing securities laws to ensure investor protection. The commission is seeking additional public input on the proposed amendments and their applicability to all securities. The public comment period remains open for 30 days following the publication of the reopening release in the Federal Register.
Exhibits & Attached Documents (2)
Extracted insights
- person comment period
- person crypto trading platforms
- company existing rules to platforms that trade crypto asset securities
- person gary gensler
- person reopened comment period
- person reopening release
- SEC reopened comment period
- SEC provided supplemental information on proposed amendments to the definition of “exchange”
- Commission initially proposed amendments in January 2022
- Commission reopened comment period in May 2022
- Reopened comment period closed June 13, 2022
- Reopening release reiterated applicability existing rules to platforms that trade crypto asset securities
- Reopening release provided supplemental information and economic analysis for systems included in the new proposed exchange definition
- Reopening release requested information and public comment on crypto asset securities trading on such systems
- Gary Gensler said supplemental release will help address comments from various market participants
- Crypto trading platforms already come under the current definition of an exchange
- Investors in crypto markets must receive the same time‑tested protections that the securities laws provide
- Public comment period will remain open for 30 days after publication of the reopening release in the Federal Register
The Securities and Exchange Commission today reopened the comment period and provided supplemental information on proposed amendments to the definition of “exchange” under Exchange Act Rule 3b-16. The Commission initially proposed the amendments in January 2022 and reopened the comment period in May 2022. The reopened comment period closed on June 13, 2022. The reopening release reiterated the applicability of existing rules to platforms that trade crypto asset securities, including so-called “DeFi” systems, and provides supplemental information and economic analysis for systems that would be included in the new, proposed exchange definition. The reopening release also requested information and public comment on crypto asset securities trading on such systems and certain aspects of the proposed amendments applicable to all securities. “I believe this supplemental release will help address comments on the proposal from various market participants, particularly those in the crypto markets,” said SEC Chair Gary Gensler. “Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws. Investors in the crypto markets must receive the same time-tested protections that the securities laws provide in all other markets. I welcome additional public comment on all aspects of the proposal in light of the information in this supplemental release.” The public comment period will remain open for 30 days after publication of the reopening release in the Federal Register.
The Securities and Exchange Commission today reopened the comment period and provided supplemental information on proposed amendments to the definition of “exchange” under Exchange Act Rule 3b-16. The Commission initially proposed the amendments in January 2022 and reopened the comment period in May 2022. The reopened comment period closed on June 13, 2022. The reopening release reiterated the applicability of existing rules to platforms that trade crypto asset securities, including so-called “DeFi” systems, and provides supplemental information and economic analysis for systems that would be included in the new, proposed exchange definition. The reopening release also requested information and public comment on crypto asset securities trading on such systems and certain aspects of the proposed amendments applicable to all securities. “I believe this supplemental release will help address comments on the proposal from various market participants, particularly those in the crypto markets,” said SEC Chair Gary Gensler. “Make no mistake: many crypto trading platforms already come under the current definition of an exchange and thus have an existing duty to comply with the securities laws. Investors in the crypto markets must receive the same time-tested protections that the securities laws provide in all other markets. I welcome additional public comment on all aspects of the proposal in light of the information in this supplemental release.” The public comment period will remain open for 30 days after publication of the reopening release in the Federal Register.