This episode is sponsored by Filecoin Foundation.

This is the hash podcast.

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All on the hash for your ears. You're listening to the Coin Desk Podcast Network.

Hello and welcome to the hash. I'm Adam B. Levine. You're Zach Seward for the day and I'm joined by

Jen Sennassie and Danny Nelson, CoinDesk's managing editor for Data and Tokens. Jen, it looks like we're

talking about Gary Gensler again. We're talking about Gary Gensler again.

We are talking about Gary Gensler again.

The SEC is considering reopening a proposal from last year that would target defy platforms as exchanges that need to be regulated.

So you'll remember in January 2022, the agency proposed expanding the definition of exchange to capture a broader swath of

trading activity in the U.S. The industry responded to the agency again last year when this was

first proposed, calling the initial proposal an overreaching power grab with not enough

clarity. Surprise, surprise. We keep hearing that same description in response to almost

everything the SEC does, but no real response from the agency. Danny, I'm going to kick this one off

to you first. What do you think of the SEC's move to reopen this proposal? Well, it's really not

surprising. And you're already seeing some in the defy and decentralized exchange

world taking active measures to avoid what they think is the inevitable outcome here, which is to say

that the SEC brings the hammer down on dexes in Solanaland, which we'll talk about more in depth

a little later. One dex called Orca has actually pulled out from the U.S. market because probably regulatory concerns.

And that's just a proactive step in advance of what is really likely to happen here,

which is that the SEC will propose and push forward rules that will expand the definition of exchange

in such a way that it will cover

...