The rule changes proposed in 2022 were criticized by the crypto industry at the time and were opposed by the Republican SEC commissioners.
The United States Securities and Exchange Commission (SEC) adopted rules on Feb. 6 that would require more market participants to register with it, join a self-regulatory organization and comply with federal securities laws and regulations. The new rules could bring crypto and decentralized finance into greater oversight.
The new rules, the text of which runs 247 pages, were proposed in 2022. They redefine “dealer” and “government securities dealer” in the Securities Act Rules, as well as the phrase “as a part of a regular business,” as it is used in the Securities Exchange Act of 1934.
The rules would apply to market participants “who take on significant liquidity-providing roles in the markets.” Specifically, a dealer under the new definitions might express “trading interest that is at or near the best available prices on both sides of the market for the same security” or earn revenue “primarily from capturing bid-ask spreads, by buying at the bid and selling at the offer, or from capturing any incentives offered by trading venues to liquidity- supplying trading interest.” SEC Chairman Gary Gensler said in a statement:
