You can't regulate DEX like regular exchanges — Coinbase

Specialists of the Coinbase cryptocurrency exchange have drafted a letter to the Sec office. In it, they report that decentralized platforms cannot be regulated in the same way and by rules as centralized platforms.

What do the experts think about this

The chief legal adviser of the crypto exchange, Paul Greval, said that the regulator has neither the authority nor the rights to issue a ban on DEX platforms if there is no clear Congressional authorization.

He also said that in 2022, the agency made attempts to introduce the terminology of a decentralized exchange without notifying the public about it. He wrote that real decentralized platforms and systems work. At the same time, they do not have a common organization that would be responsible for meeting various requirements. It is absolutely impossible to apply the proposed regulation to decentralized platforms.

The lawyer believes that the regulator has not made an objective economic analysis of the crypto industry. However, he wants to promote his own political vision. Earlier, the specialist reported that the actions of the Commission regarding the regulation of the crypto industry undermine the competitiveness of the country.

It should be noted that a trial is currently taking place between the Coinbase crypto exchange and the SEC office. The latter accused the platform of trading securities that were not registered with the Commission.

The GRIN4 ecosystem

We have created a bot to make money on crypto exchanges. You set the settings, and he trades 24/7. Manage all assets from one service: with your own hands or with the help of algorithmic trading. Anonymously. Simply. Stress-free.