Apr. 17, 2023
April 17, 2023 Re: s7-02-22 Amendments to Exchange Act Rule 3b-16 Regarding the Definition of Exchange I am in support of expanding the definition of an exchange to include platforms that trade crypto asset securities, including tokenized shares. There is too much fraud occurring in the crypto environment at the moment that regulation is sorely needed. So many institutions in the financial industry (market makers, hedge funds) are using these platforms to resolve their liquidity issues, at the same time manipulating traditional stock prices. Regulating these platforms is a major step in widespread adoption by the average investor. As long as they remain unregulated, investors will continue to see these platforms as an unsafe place to transact. This amendment would be beneficial as long as as it is properly enforced. As we see currently at the SEC, the fines are ridiculously low and enforcement is lacking. Even in traditional finance, those who break the rules are given a slap on the wrist. The SEC had the authority to do so much more, like halt trading in dark pools and ATS. While these proposals are a step in the right direction, more action needs to be taken. I hope the SEC continues its path to establish and maintain fair and free markets, and not enable these platforms to get away with fraud.