The U.S. Securities and Exchange Commission (SEC) is reviewing its crypto policies and contemplating the removal of the exchange registration rule. This potential shift could ease regulatory pressure on digital asset platforms, fostering a more adaptable trading environment.
Uyeda said he had told SEC employees to think about ways to revoke the initially suggested 2022 rules portions. The rule was meant to include more cryptocurrency platforms as alternative trading systems (ATSs), which would make them subject to stricter regulation. But unfavorable public comments and strong resistance from business leaders have caused the SEC to rethink.
“In light of major public concern over the definition of “exchange” in relation to crypto, I have asked SEC staff to investigate options to abandon this aspect of the proposal,” Uyeda said. He also attacked the way the former government handled the issue, calling it a mistake to equate Treasury market rules with more supervision of the cryptocurrency sector.
Originally, former SEC Chairman Jay Clayton proposed the rule to more precisely control players in the Treasury market. However, Gary Gensler, his successor, expanded the idea to encompass more trading venues, including those involved in bitcoin exchanges. The sector objected to this action, claiming it would limit creativity and burden newly founded digital asset companies excessively.
The SEC has regulated cryptocurrencies more sensibly since Gensler left office. Legal action against multiple companies, including Gemini, Kraken, and Cumberland DRW, has been shelved. The agency also established a specialized crypto task force under Commissioner Hester Peirce, a renowned industry favorite. The task force seeks to provide better rules for digital asset companies, so balancing investor safety with the necessity of innovation.
The sector is closely monitoring potential legislative changes as the SEC shifts away from aggressive enforcement. Uyeda’s remarks imply that the agency is open to reevaluating past rules and interacting with interested parties to create a more sensible method of supervising the developing crypto market.
This evolution points to a possible turning point for U.S. cryptocurrency rules since it provides a more adaptable and industry-friendly environment while nonetheless guaranteeing adherence to required financial rules.
