[3dfan]

Can't decentralized exchanges be completely anonymous?

If a user sends some ETH to an adress and on some Bitcoin address a balance shows up - how would the SEC want to regulate that?

Let alone exchanges that are just a contract on Ethereum and only exchange tokens on the Etherum blockchain. What is the SEC going to do about those?

And what would happen if some country in the world tokenizes their property. Say a certain token on the Ethereum blockchain means ownership in a company in Sweden. What if a US citizen buys such a token by sending ETH to a smart contract?

So many questions.

Shouldn't these have been kinda answered already in regards to international exchanges? What if a US citizen buys stock on the Euronext Paris, the French stock exchange? Would the Euronext Paris have to be registered with the SEC? What if they are not? Are they committing a crime in the eyes of the SEC?

[LapsangGuzzler]

Not really, because the major service that exchanges provide is to convert between crypto and cash. The tremendous growth seen in the industry over the last few years was fueled by an influx of cash into the crypto markets by way of exchanges.

Dealing in cash means managing some sort of bank or brokerage account, which falls under federal purview.

[trifurcate]

Decentralized exchanges are... exactly not that. They only trade on-chain assets for on-chain assets. Fiat ramps are not part of what makes a decentralized exchange.

[charcircuit]

DeFi platforms do not deal with cash. Everything has to be on chain.

[adrr]

SEC can force all the exchanges that have US customers to blacklist any crypto that touches those addresses.