US Financial Regulators Begin Review of New Blockchain Finance Rules

The U.S. Securities and Exchange Commission (SEC) has begun a review of new regulatory measures for on-chain financial markets, including DeFi. The SEC is considering the establishment of new rules applicable to DeFi and related software applications, according to a report by Odaily.

SEC Commissioner Paul Atkins pointed out that software protocols like DeFi are difficult to clearly categorize within the existing regulatory framework as exchanges, brokers, or clearinghouses.

This is because a single protocol can simultaneously perform functions such as trade execution, collateral management, liquidity routing, and settlement, he explained.