The U.S. Securities and Exchange Commission (SEC) recently reopened the comment period regarding proposed amendments to Exchange Act Rule 3b-16.
The proposed amendments address the definition of an exchange under Exchange Act Rule 3b-16. The SEC initially proposed the amendments in January 2022 and reopened the comment period in May 2022, which closed on June 13, 2022.
The public comment period will now remain open for 30 days after publication of the reopening release in the Federal Register.
“I believe this supplemental release will help address comments on the proposal from various market participants, particularly those in the crypto markets,” SEC Chair Gary Gensler said. “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 reopening release reiterated the applicability of existing rules to platforms that trade crypto asset securities, including DeFi systems, providing supplemental information and economic analysis for systems 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 apply to all securities, the SEC said.