So yesterday, the SEC finalized the "dealer" rule. Below are my preliminary thoughts about what this means. Tl;dr - LPs, DEXs, RIAs, Prop Trading Firms may all be impacted. The SEC created yet another amorphous "facts and circumstances" test.

So yesterday, the SEC finalized the "dealer" rule. Below are my preliminary thoughts about what this means. Tl;dr - LPs, DEXs, RIAs, Prop Trading Firms may all be impacted. The SEC created yet another amorphous "facts and circumstances" test.

https://www.sec.gov/files/rules/final/2024/34-99477.pdf

Law & Policy

The SEC’s broker-dealer expansion would include LPs of $50m+ in AMMs. 

But there’s a fatal flaw: the definition requires actors be in the “business” of trading securities.

A “business” is a *for profit* entity.

But most LPs don’t profit, they lose money.

Checkmate, Gary.

It’s okay, I’ve pinned down the legal argument to defeat the dealer rule.

Head of Legal @ Blockchain Association. Casts not legal advice. 

Author of @ The Undefined on Substack. 

It’s okay, I’ve pinned down the legal argument to defeat the dealer rule. 

https://warpcast.com/ocosme/0xc64f29fa