a16z Urges SEC to Clarify Exchange Rules, Grant Software Safe Harbor
- —The safe harbor creates a rebuttable presumption that DEXs and DEX Apps are not engaged in exchange activity
- —Four DEX criteria: no custody, automated execution, permissionless access, credible neutrality
- —DEX Apps must use objective pricing sources and limit developers to technical maintenance
- —A separate framework would let crypto trading platforms register with the SEC and FINRA under an ATS-style regime, including mixed asset pairs
Why it matters: If adopted, the proposal would give US DEXs regulatory clarity and open the door to onchain trading of tokenized securities.
Source: Crypto Economy