[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.

[ralston3]

This.

[hef19898]

Which means those exchanges are, until crypto becomes a mainstream payment method for everyday stuff, completely pointless. And, as a result, crypto as well.

[matheusmoreira]

> until crypto becomes a mainstream payment method for everyday stuff

It sucks that this hasn't happened already. Monero pretty much just works, the technology is already there. People insist on treating cryptocurrencies like stocks instead.

[trifurcate]

> Which means those exchanges are ... completely pointless.

I wonder what entices people to execute hundreds of thousands of trades totaling USD equivalent billions in daily trading volume on these platforms then. Would you say that everyone using these platforms is basically out to scam others or get rich quick?

[bleep_bloop]

They're commodities. People trade in commodities millions of times a day, thats what you're describing. But unless it's possible to cash out into fiat they are completely worthless.

It's sad to see what has happened to crypto. So many scams and people using it as an investment opportunity. It will obviously never be able to replace fiat in it's current conception.

[LiquidSky]

Yes, though there's also a smaller cadre of naive true believers in there.

[charcircuit]

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

[bfung]

So how does one get a token on one of these platforms?

I certainly won’t pay cash for a token!

[charcircuit]

You get a token by swapping other tokens you already have. If you don't have any tokens and don't wasn't to bup tokens for cash than you can enter give aways, or work for someone willing to pay you with tokens.

[adrr]

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