Apr. 19, 2023
I am in favor of regulating tokenized stocks. I would prefer that stocks and cryptocurrency remained separate, and not allowed to integrate in order to prevent bad actors from hiding counterfeit securities and "fail to delivers" in cryptocurrency altogether, but until then, all tokenized stocks should be regulated for transparency. I'd also like to express my concerns about the SEC's proposal to expand the definition of an exchange to include DeFi protocols and other open-source tools. These are different from stock exchanges that the SEC currently regulates. It doesn't make sense to apply the same rules to both unless the SEC wants to kill the industry. I think this proposal is part of an effort to control DeFi through confusing and overreaching rules. The SEC hasn't mentioned DeFi by name, but it's clear that they want to control this new technology. If the SEC wants to regulate DeFi, they should be clear about it, and name the protocols they think aren't following the rules. Instead, they've only talked about "consumer protection," which isn't specific enough. We have a great opportunity to create a new industry, like we did with transistors and the internet. But if we add too many regulations, we'll stop innovation before it has a chance to grow. We can help more people by expanding financial knowledge, and giving more people a chance to succeed. This rule is trying to apply old rules to a new industry with new ideas, new value propositions, and new value systems that we need. I hope the SEC will listen to the voices supporting this new industry, and not just protect the established interests. That's why I ask that the SEC withdraw this proposal and not include open-source developers and permissionless protocols in their rules until they understand them better. Looking forward! Chris