Overview

• 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.