Coinbase Says DEXes Cannot Be Regulated as Centralized Exchanges

Paul Grewal, the General Counsel of Coinbase, has recently sent a letter to the US Securities and Exchange Commission (SEC) stating that it is impossible to regulate decentralized exchanges (DEX) like centralized exchanges due to the lack of clear congressional authorization.

Grewal is questioning the SEC’s proposed rule for DEX, which was attempted to be made without notice to the public, calling it an “impossible requirement.”

He has further asserted that the Commission did not conduct a proper economic analysis of the crypto space, only promoting its “own political preferences.”

As a reminder, last June the SEC sued major cryptocurrency exchanges, such as Coinbase and Binance, with the latter declining to alter its practices in the face of the lawsuit.

Grewal has painted the Commission’s approach to regulating the cryptocurrency industry as “undermining US competitiveness.”