Regulation· ★★★· neutral·

SEC undecided on whether TSVs and market makers are exchanges or dealers

  • SEC has neither confirmed nor denied the status of TSVs and liquidity providers as exchanges or dealers
  • Exchange status requires SEC registration, dealer status requires broker-dealer registration with different requirements
  • Companies cannot finalize registration and product structure without clarity from the regulator
  • The next trigger is any SEC rule or court decision with criteria for distinguishing functions
Why it matters: Uncertainty over the status of TSVs and market makers keeps legal risks for crypto infrastructure and could lead to new SEC lawsuits or rules.
Source: Coincu