ConsenSys Opposes SEC's Proposed Draft Exchange Act

Ethereum software developer ConsenSys has submitted a letter to the SEC opposing the SEC's proposed draft Exchange Act. ConsenSys has expressed concern that some of the language in the proposed rules may inadvertently designate decentralized systems, such as some systems built on Ethereum. If these systems are misinterpreted as containing securities transactions, then these systems are exchanges within the meaning of the Exchange Act of 1934 ("Act 34"). In addition, ConsenSys calls on the SEC to make clear that blockchain-based networks are not within the scope of the draft discussed herein.