Apr. 11, 2022
Hello, I am writing to express my concern and misgivings related to the proposal of the SEC to expand the definition of an exchange to include DeFi protocols and other open-source tools, systems and contributors. It's clear to me that these are categorically different in operation and constitution than the stock exchanges the SEC currently regulates. Applying the same requirements is nonsensical unless the intention is to kill the industry. Furthermore, I feel this proposal is part of an SEC effort to ensnare DeFi through ambiguous and overreaching rulemaking. Nowhere in the proposal is DeFi mentioned by name, though one can clearly see it's meant as a first step to bring this new medium to heel. If the SEC wants to regulate DeFi, it should speak with clarity, name the industry it is addressing, name protocols it feels are operating improperly and point out specifically where they are falling short. Instead, the SEC has pointed vaguely at "consumer protection". We have witnessed terrible behavior by supposedly "regulated" and "compliant" banks and exchanges, which any rational person understands are rigged in favor of extreme wealth and large actors. Our country has an amazing opportunity to forge a new industry, similar to past opportunities in transistors, the internet and other breakthrough technologies. If these technologies are frustrated through onerous regulations we will stifle the innovation before it has an opportunity to develop. We have a chance to expand economic knowledge and empowerment to more people. This rule tries to apply a broken status quo to an industry with exciting new ideas, new value propositions and new value systems that are desperately needed. I hope the SEC will heed all of the voices calling for the support of this nascent industry, and not continue to protect the established interests calling for its demise. For this reason I ask that the SEC withdraw this proposal and in the future explicitly exclude open source developers and permissionless protocols from such rule-making until a time that they are better understood and matured. Thank you, A US Citizen