Unchained Why the SEC's Proposed Rules Affecting DeFi Could Violate the First Amendment - Ep.344
Apr 22, 2022
Peter Van Valkenburgh, Director of Research at Coin Center, dives into the SEC's proposed rules that threaten the free-speech rights of crypto developers. He explains how redefining 'exchange' could stifle innovation and examines the possible chilling effect on software publication. Peter discusses historical precedents protecting developers’ rights and the community's need for a legal response. Ultimately, he suggests that coding software is a form of free speech, raising urgent questions about the implications for decentralized finance.
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SEC Rulemaking's Impact on Software Developers
- The SEC's proposed rulemaking redefines "exchange" broadly, impacting software developers.
- Publishing software that facilitates securities trading may require registration, raising free speech concerns.
Targeting Crypto and DeFi Implicitly
- The SEC's proposal omits explicit mention of crypto, DeFi, or software, despite potentially affecting them.
- This discrepancy between the broad wording and the narrow economic analysis raises questions about the SEC's intent.
IMS Health v. Sorrell Precedent
- The IMS Health v. Sorrell case involved pharmaceutical data brokers and restrictions on data sales.
- The Supreme Court ruled that banning such sales violated free speech, even for commercial purposes.
