SEC Expands 'Dealer' Definition, Including Crypto and DeFi in Regulatory Scope

The U.S. Securities and Exchange Commission's new rule aims to bring more financial operations, including those in crypto and decentralized finance, under its regulatory purview.

• The SEC's updated rules require entities engaging in activities that provide liquidity to market participants to register as dealers, potentially affecting many in the crypto and DeFi sectors.
• Crypto industry stakeholders express frustration over the lack of clear guidance and the impracticality of compliance for decentralized finance operations.
• Despite industry pushback and calls for clearer regulations, the SEC maintains that existing laws apply and that crypto companies should register under them.
• Commissioners Mark Uyeda and Hester Peirce opposed the rule, citing concerns over regulatory confusion and its practical application in the crypto markets.
• The final rules will take effect 60 days after publication in the Federal Register, with a compliance date set for one year later.

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