Blockchain Association Challenges SEC Over DeFi Double Standard

The Blockchain Association has formally petitioned the Securities and Exchange Commission (SEC) to address an alleged double standard regarding its regulatory stance on decentralized finance (DeFi). The industry group is seeking clarity on whether the agency intends to grant exemptions to traditional market makers, such as Citadel Securities, while simultaneously pursuing enforcement actions against native crypto protocols.

In a letter addressed to SEC Chair Gary Gensler, the organization highlighted concerns that the Commission’s recent regulatory approach could create an uneven playing field. The Association pointed to the SEC’s definition of 'exchanges' and how those rules are applied to decentralized platforms versus established Wall Street firms. The group argues that if the SEC intends to regulate DeFi platforms as securities exchanges, it must apply the same stringent requirements to traditional financial companies that engage in similar market-making activities.