Industry participants are urging the U.S. Securities and Exchange Commission (SEC) to formalize its crypto guidance on decentralized tools, arguing clearer rules would reduce uncertainty and better align oversight with blockchain infrastructure.
Key Takeaways:
- Over 30 crypto industry participants urged SEC to formalize DeFi guidance.
- Regulatory ambiguity around SEC broker rules threatens blockchain innovation.
- Commissioner Hester Peirce backed rulemaking to align SEC policy with DeFi.
Crypto Industry Participants Press SEC to Formalize DeFi Guidance
The crypto industry is urging the U.S. Securities and Exchange Commission (SEC) to turn recent guidance on decentralized tools into formal rules, a move supporters see as positive for long-term blockchain development. On April 21, DeFi Education Fund and over 30 organizations submitted a letter backing the agency’s position on certain crypto transaction interfaces while pressing for a formal regulatory framework that would provide lasting clarity.
The coalition supported the regulator’s distinction on non-custodial tools, arguing that these interfaces serve as technical infrastructure rather than transaction intermediaries. DeFi Education Fund, a U.S.-based advocacy group, organized the response, while the other firms and organizations signed on as independent supporters. The position also aligns with Commissioner Hester Peirce’s broader push for modernized broker definitions that reflect crypto market structure. The letter stated:
“We therefore respectfully urge the Commission to build upon the Statement through notice-and-comment rulemaking.”
“Specifically, the Commission should consider adopting a principles-based framework that provides clear, objective criteria for when activity falls within the definition of ‘broker,’ iterating on the criteria in the Statement,” the letter added.
Commissioner Peirce reinforced this direction in separate remarks, calling for a permanent overhaul of broker-dealer rules to better align with decentralized technologies. She emphasized that legacy definitions risk misclassifying software providers and infrastructure participants, signaling the need for a durable framework that reflects current crypto market realities. Her position adds weight to the industry’s argument that formal rulemaking, rather than guidance, is essential for long-term regulatory clarity.
Formal Broker Framework Seen as Key to DeFi Expansion
Rulemaking is central to the group’s argument because Staff guidance does not carry the same durability as a formal rule. The letter pointed to continuing debate over how the term “broker” should apply in decentralized markets and argued that infrastructure providers, including validators, data services, and communications networks, should be distinguished from entities that actively intermediate transactions. The signatories warned that regulatory ambiguity could chill blockchain development and reduce efficient market access for investors.
The letter closed with a forward-looking appeal for a more stable, technology-neutral approach. The coalition wrote:
“We are hopeful that formalizing the principles in the Statement into a durable, technology-neutral regulatory framework would provide lasting clarity and reinforce the approach outlined by the Staff, and we look forward to providing additional, detailed commentary in the future.”
In the group’s view, codifying the SEC’s position would reduce uncertainty, limit future reinterpretation, and provide a stronger foundation for decentralized finance development.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Gate will delist the trading of 14 tokens including 5IRE, UNO, BLY, etc. on April 30. Users must withdraw assets or apply for a buyback within the specified time.
Gate News message, according to an official Gate announcement
Gate has announced the delisting of trading services for 14 tokens. The tokens to be delisted include 5IRE, UNO, BLY, CLEAR, KIMA, TMAI, LOVE, TARA, DIONE, STARL, MASA, OPUL, MCRT, and ROCK, all of which correspond to USDT trading pairs. Gate has paused the deposit service for these tokens and will, before 2026-04-30 11:00(UTC+8), close new leveraged lending and collateralized lending, and also pause the related spot trading pairs, Quant Grid, Yubibao, and leveraged trading.
After 2026-04-30, users who still hold the above tokens on Gate may submit an application to participate in the buyback. The buyback price varies by token. Users need to submit the buyback application form between 2026-05-14 and 2026-05-21. For a single account, the maximum compensation amount is 100 USDT. In addition, users can withdraw the tokens to their Gate Web3 wallet for permanent storage, or take out the tokens before delisting from the trading market.
GateAnnouncement45m ago
Hong Kong Plans to Launch Crypto OTC Compliance License by Year-End, Pushes RWA Secondary Market Trading in Stablecoins
Gate News message, April 23 — Hong Kong plans to introduce a crypto OTC compliance license by the end of 2026, according to Wu Jiezhuang, a member of the National Committee of the Chinese People's Political Consultative Conference (CPPCC) and chairman of the Legislative Council's Commerce and
GateNews1h ago
Japan's FSA Advances Crypto Asset Reclassification to Financial Instruments Law, Launches Three Stable Coin Payment Pilot Projects
Gate News message, April 23 — Japan's Financial Services Agency (FSA) has submitted legislation to Parliament proposing to reclassify crypto assets from the Payment Services Act to the Financial Instruments and Exchange Act, according to remarks by Shigeru Shimizu, director of the FSA's Risk
GateNews2h ago
New York Governor Hochul signs an executive order restricting state government employees from “insider trading in prediction markets”
New York Governor Kathy Hochul signed an executive order on Wednesday, April 22, barring state officials and employees from using nonpublic information obtained through their positions to place bets in prediction markets, or from assisting any third party in engaging in the foregoing conduct. On the same day, prediction market platform Kalshi announced that it had completed an internal investigation into three political candidates who placed bets in their own campaign activities, and imposed fines and suspensions on them.
MarketWhisper2h ago
The SEC received a joint letter signed by 30 firms, calling for the establishment of regulatory rules for DeFi brokers.
The DeFi Education Fund (DeFi Education Fund) on April 21 jointly with more than 30 cryptocurrency industry organizations submitted a joint letter to the U.S. Securities and Exchange Commission (SEC), urging the SEC to adopt the “notice-and-comment” formal rulemaking process and to convert the current staff statements regarding decentralized tools into formal rules with lasting effect.
MarketWhisper2h ago
The Thailand SEC releases a regulatory proposal allowing digital asset firms to directly apply for derivative brand licenses.
According to an April 23 announcement from the Thai Securities and Exchange Commission (SEC), the agency has formally submitted amendments to its digital asset derivatives business licensing rules. The proposal would allow firms that already hold digital asset operating licenses to apply directly for a derivatives business license without needing to establish a separate legal entity. The proposal also introduces requirements for managing conflicts of interest for companies that engage in both digital asset and derivatives businesses, and it calls for financial standards for derivatives exchanges and clearing institutions to align with international benchmarks.
MarketWhisper3h ago
