The Securities and Exchange Commission (SEC) has reopened the comment period for the second time, concerning a rulemaking that may classify several Decentralized Finance (DeFi) protocols as an 'exchange' according to the law. The ruling poses a challenge for DeFi platforms as they do not have control over user assets or information, making it uncertain how they would comply. The SEC's recent actions against crypto projects throughout 2023, including a lawsuit against Bittrex and a Wells Notice to Coinbase, have raised concerns within the crypto industry. Hester Pierce, a pro-crypto SEC commissioner, criticized the agency's endeavor to redefine the concept of an exchange. The proposed rulemaking introduces the term 'communication protocol system,' which lacks clarity. There are three potential outcomes for the SEC's rulemaking: finalizing the rule, initiating another comment period, or abandoning the effort altogether. However, if the rulemaking is finalized, it is expected to face significant resistance from the crypto community and other entities, such as Bloomberg Terminal. Legal experts believe the SEC's wide-ranging authority in this matter warrants strong opposition.