DeFi Industry Seeks Formal Regulatory Clarity from SEC

Regulatory uncertainty continues to surround the DeFi industry as it pushes for formal guidance from the Securities and Exchange Commission (SEC). In a recent letter, over 30 crypto firms and advocacy groups requested that the SEC formalize its previous statement on non-custodial DeFi user interfaces.

The April guidance allowed certain platforms to operate without registering as broker-dealers or exchanges. However, industry players argue that this informal guidance is vulnerable to challenge in court and may not provide 'durable clarity' for the sector.

The SEC's previous statement also offered a five-year exemption for DeFi platforms while Congress works on a legislative framework. This move has been met with opposition from Wall Street players who believe tokenized assets should be subject to regulation.