SEC Regulation Proposal on Crypto

One of the U.S. Securities and Exchange Commission’s (SEC) regulation proposals aimed to include digital asset businesses under its jurisdiction by expanding the definition of trading venues that need to register.

Acting Chairman Mark Uyeda is seeking to reverse this initiative, which has been in development for years and is awaiting finalization. He has requested SEC staff to halt the proposal.

> “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 remarked during a speech scheduled for delivery at the Institute of International Bankers in Washington. He noted the significant negative public feedback regarding the proposed definition of exchanges related to crypto and has asked for alternatives to abandon that aspect of the proposal.

The SEC initially sought to identify exchanges by including certain “communications protocols.” Uyeda explained that these had been sufficiently identified and the proposal could inadvertently capture various protocols used for crypto assets.

This rule proposal was part of several initiatives from former chair Gary Gensler, whose approaches to cryptocurrency regulation are now under scrutiny by the current leadership appointed by President Donald Trump.