• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: Bitcoin Price Makes History By Crossing $126,000: Options Market Forecasts Next Price Targets
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: Bitcoin Price Makes History By Crossing $126,000: Options Market Forecasts Next Price Targets
Decentralized Exchanges Can’t Escape the SEC, Warns its Cyber Chief

Decentralized Exchanges Can’t Escape the SEC, Warns Its Cyber Chief

Melanie Kramer
by Melanie Kramer
6 years ago
·
Posted in Ethereum, News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

The U.S Securities and Exchange Commission (SEC) has filed charges in the first-ever case involving a decentralized Ethereum-based exchange. The head of the SEC’s new cyber unit has followed with a warning that decentralized exchanges must be compliant as well, adding that creators will be held responsible.


On November 8, 2018, the SEC brought charges against the creator of decentralized exchange EtherDelta which some argue is “just a smart contract,” rather than a conventional cryptocurrency change.

The Focus of the SEC ‘is on the Function’

Speaking to Forbes, Robert Cohen, Chief of the SEC Division of Enforcement Cyber Unit, has now warned that using blockchain technology to create an exchange, without centralized operation or management, still leaves the technology’s creator both responsible and liable. Cohen has said the focus is not on the service’s label, nor the technology used, but that:

The focus is on the function, and what the platform is doing. Whether it’s decentralized or not, whether it’s on a smart contract or not, what matters is it’s an exchange.

Decentralized exchange mechanisms, like EtherDelta, run on self-executing code connecting buyers and sellers in order for them to exchange directly with each other.

In the case of EtherDelta, the charges were brought against its founder Zachary Coburn for an operating an exchange not authorized or exempted by the SEC.

The SEC cyber unit, ran by Cohen, was created in 2017 as a direct result of The DAO scandal. EtherDelta is the first decentralized, smart contract based exchange with similarities to The DAO to face action.  The DAO’s creators themselves have never faced action from the SEC. However, the report issued by the SEC afterward, the 2017 DAO Report, confirms that tokens, including DAO tokens, are securities. As such, these tokens and exchanges are subject to the regulatory oversight of the SEC.

The SEC Sets a Deadline to File Comments for or Against Bitcoin ETF Applications

Are Charges Ahead for Other Exchanges?

Cohen’s clarification regarding the responsibility of decentralized exchange creators follows warnings by crypto and securities legal experts who say that the latest SEC action against EtherDelta may set a precedent in the industry.

Both warnings could indicate further charges are ahead for cryptocurrency exchanges and their creators or operators. Ever increasing decentralization and anonymity for some new exchanges, however, could complicate future SEC investigations.

According to Forbes, the EtherDelta exchange was still conducting trades on Friday, November 9th, even after Coburn agreed to pay the SEC $388,000 in disgorgement, interest, and penalties.

Do you think the SEC can adapt quickly enough to keep up with new technologies? Should the SEC be targeting decentralized exchange creators?


Images courtesy of Shutterstock.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Melanie Kramer

Melanie Kramer

Follow

Full Profile

Related Posts

Ethereum news

Ethereum Landed Its Biggest Partner Yet — SWIFT, Confirms Joe Lubin

2 hours ago
Ethereum news

Ethereum Has A Fundamental Problem, Warns Cyberpunk Nick Szabo

18 hours ago
ethereum eth ethusd

Ethereum (ETH) Rises With Global Liquidity Expansion: Is $5,000 the Next Major Target?

1 day ago
ethereum

Ethereum Treasuries “Propped Up” By $6 Billion In Korean Retail Money, Says Crypto Founder

1 day ago
Ethereum

BitDigital Becomes First Public Ethereum DAT To Deploy Unsecured Leverage – Details

4 days ago
World Liberty Financial

World Liberty Financial: Trump Jr. Defends Company Against Political Accusations

5 days ago
Please login to join discussion

Premium Sponsors

Press Releases

  • ...

    20 hours ago
  • Your Chance to Win Up to 10% Deposit Bonus and Up to 21K $USDT Bonus Prizes at KCEX

    Your Chance to Win Up to 10% Deposit Bonus and Up to 21K...

    1 day ago
  • 分析師稱 FARTCOIN 有望暴漲...

    1 day ago
  • Fleet Asset Management Group Brings the Power of Cloud Crypto Mining in a Low-Carbon Package.

    Fleet Asset Management Group Brings the Power of Cloud...

    2 days ago
  • The Quiet Market Shift Investors Might Be Missing: How Tapzi Is Challenging Institutional Favorites

    The Quiet Market Shift Investors Might Be Missing: How...

    6 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.