Patrick Daugherty Addresses SEC Rule Changes Impacting Digital Assets

Foley & Lardner LLP Partner Patrick Daugherty was featured in a CoinTelegraph article, “Stealth rulemaking: Is proposed SEC rule with no mention of crypto a threat to DeFi?,” on the proposed amendments from the U.S. Securities and Exchange Commission (SEC) to the Exchange Act that could expand the definition of an exchange and affect platforms that facilitate crypto transactions by putting them under SEC regulation and subjecting them to additional registration and reporting.

Of the proposed change, Daugherty said, “It’s a ‘stealth’ proposal because the words ‘crypto’ and ‘digital’ do not appear in the SEC’s 654-page release, but the SEC is plainly aiming at systems (both centralized and decentralized) whose protocols aggregate indications of interest for buying and selling crypto assets.”