SEC Delays DeFi Broker Regulation Amid Industry Pushback

Trump Kills DeFi Broker Rule, Major Crypto Win as Finance Redefined

In a surprise move, the Trump administration has scrapped a proposed rule that would have forced decentralized finance (DeFi) brokers to register with the Financial Industry Regulatory Authority (FINRA), a major victory for the cryptocurrency industry.

The rule, which was proposed by the Financial Stability Oversight Council (FSOC) in 2019, aimed to bring DeFi brokers under the same regulatory umbrella as traditional financial institutions. However, the proposal faced fierce opposition from the DeFi community, which argued that the rule would stifle innovation and drive the industry underground.

The Trump administration's decision to kill the rule is seen as a major win for the DeFi community, which has been pushing for greater regulatory clarity and flexibility. The move is also seen as a sign that the administration is willing to listen to the concerns of the crypto industry and work towards finding a balance between regulatory oversight and innovation.

"This is a huge win for the DeFi community and a major step forward for the industry," said Alex Kruger, CEO of decentralized exchange (DEX) Kraken. "The Trump administration has shown that it is willing to listen to the concerns of the crypto community and work towards finding a regulatory framework that is fair and conducive to innovation."

The proposed rule had been met with widespread criticism from the DeFi community, which argued that it would impose unnecessary burdens and costs on small and medium-sized DeFi brokers. The rule would have also required DeFi brokers to maintain minimum capital requirements, which would have made it difficult for new entrants to enter the market.

The Trump administration's decision to scrap the rule is seen as a major victory for the DeFi community, which has been pushing for greater regulatory clarity and flexibility. The move is also seen as a sign that the administration is willing to listen to the concerns of the crypto industry and work towards finding a balance between regulatory oversight and innovation.

"This is a huge win for the DeFi community and a major step forward for the industry," said Alex Kruger, CEO of decentralized exchange (DEX) Kraken. "The Trump administration has shown that it is willing to listen to the concerns of the crypto community and work towards finding a regulatory framework that is fair and conducive to innovation."