SEC’s Acting Chief Proposes Abandoning Crypto Trading System Regulation
March 10, 2023 – WASHINGTON – Mark Uyeda, the acting chairman of the U.S. Securities and Exchange Commission (SEC), has announced a significant shift in the regulatory landscape surrounding cryptocurrency trading. During remarks delivered at an event attended by bankers, Uyeda signaled his intention to halt a previously proposed plan that would have expanded the definition of alternative trading systems (ATS) to include certain cryptocurrency firms.
The 2022 proposal aimed to require specific crypto entities to register as alternative trading systems, a move that sparked considerable backlash from the cryptocurrency sector. Critics argued that such regulations would impose excessive oversight and complicate operations within the industry. Uyeda’s recent comments reflect a departure from this approach, indicating that the current plan may not align with the SEC’s goals.
"In my view, it was a mistake for the Commission to link together regulation of the Treasury markets with a heavy-handed attempt to tamp down the crypto market," Uyeda stated. His remarks highlight a desire to separate the regulation of different financial markets, especially in light of the unique challenges and characteristics presented by cryptocurrency trading.
Additionally, Uyeda expressed his commitment to engaging with various stakeholders, including the U.S. Treasury Department and the Federal Reserve, to revisit the original regulatory changes proposed for government securities alternative trading systems. This renewed dialogue aims to reassess the approach to regulation within these markets, acknowledging the complexity of navigating both government securities and the burgeoning crypto landscape.
This shift comes at a pivotal time for the SEC, which has been operating under different leadership dynamics. In recent months, the SEC began to reformulate its crypto policy, launching a dedicated task force under Republican leadership to streamline its approach to cryptocurrency regulation. The agency has also taken steps to pause or dismiss pending lawsuits against certain crypto firms, signaling a potential pivot towards a more lenient regulatory framework.
Uyeda’s comments mark a notable moment in an ongoing debate about how best to regulate the fast-evolving world of cryptocurrencies, balancing investor protections with the need for innovation in the financial markets. As discussions continue, the outcome may significantly influence the future for cryptocurrency trading and compliance in the U.S.
For further developments and insights on regulatory changes, stay connected for updates.
Reporting by Chris Prentice in Washington; Editing by Matthew Lewis
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