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SEC Proposes Registration Requirement for Large Decentralized Exchanges

Under proposed regulations, decentralized exchanges (DEXs) with liquidity positions exceeding $50 million would need to register with the SEC. While DEXs have been instrumental in the DeFi revolution, offering peer-to-peer cryptocurrency trading without intermediaries, concerns persist about market integrity and investor protection. The SEC aims to address these concerns by bringing significant DEX operations under its regulatory oversight, potentially requiring adherence to compliance standards such as disclosure requirements and anti-money laundering measures. Critics caution that such regulations could stifle innovation and undermine the decentralized ethos of DeFi, while stakeholders prepare for vigorous debate during the public commentary period. The outcome will shape the future of decentralized exchanges and the broader DeFi ecosystem. (Source: Altcoinbuzz.io)