Polygon Labs requests a new ‘exchange’ definition from the SEC

The US Securities and Exchange Commission recently sought a revised definition of ‘exchange’. The Commission has urged ventures to qualify for the category only after all the individuals or entities running the processor to facilitate communication have registered with them.

While this may sound reasonable, crypto ventures are less likely to view it positively. Polygon Labs, for one, has responded to the announcement by raising its voice. Rebecca Rettig, chief policy officer at Polygon Labs, has emphasized that the proposal to amend the definition of exchange is harmful to the DeFi industry.

Rebecca has added that it will even go to the extent of threatening the existence of permissionless blockchain networks in the country.

Her argument is supported by the fact that all the validators, individuals, or entities involved in the network can’t coordinate and register with the SEC. This is due to several legal, practical, and technological perspectives. She has further clarified that validators don’t control protocols in any manner, making it less critical for them to register themselves.

Rebecca, calling the release biased toward blockchain technology, has hinted that the announcement is inconsistent with its existence. It will be a de facto ban on permissionless blockchain networks, concluded Rebecca in a series of tweets.

This comes a couple of days after Polygon clarified its vision statement. It points out that the vision is to build the value layer of the internet and allow everyone to create and exchange information among themselves. The goal was to introduce Polygon 2.0 with a rough blueprint to construct the Value Layer.

Polygon 2.0 is basically a bunch of upgrades that entirely change how one imagines the platform’s functioning. It covers all the important aspects, ranging from governance to protocol architecture. Once implemented, the ecosystem will have unlimited scalability and ZK Tech’s unified liquidity. The project is in its initial phase, with more pieces of information to follow. They would shed light on the future of the Polygon PoS chain, its utility and evolution, and the transition to becoming a greater community of treasury and governance protocols.

Polygon PoS is slated for June 19, 2023. It will be followed by Architecture & Stack, Token, and Governance on June 26, 2023, July 10, 2023, and July 17, 2023. The community has responded positively to the development, saying that it is excited to explore the project.

The recently announced partnership with Flipkart and Hang is strengthening its position in the market. They collectively attempt to launch an on-chain brand-first loyalty program in the Web3 sphere.

Through this partnership, Flipkart will be able to offer its users the gamification experience with advantages like NFT tech. The experience is expected to be engaging, personalized, and rewarding.

Polygon Labs has submitted its response to the SEC regarding its rules to redefine exchange. The Commission has yet to respond.