SEC commissioner Hester Peirce has criticized the regulatory agency's proposal to expand the definition of an "exchange" to include decentralized finance (DeFi) platforms that trade cryptocurrencies. She called it an effort to stymie the development of new technology in a statement titled "Rendering Innovation Kaput." Peirce said the proposal brings broad and blurry standards that limits the scope of activities for participants in the cryptocurrency sector, undermining the country's First Amendment rights. The SEC has five commissioners and voted 3 to 2 for the proposal, with Peirce and Commissioner Mark T. Uyeda dissenting. Meantime, the Investor Advisory Committee under the SEC urged the federal regulator to continue its aggressive enforcement against crypto businesses to protect investors from illegal activities. (forkast)