The Acting Chairman of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, announced this Monday that he has instructed staff to explore options for abandoning a proposed plan that would have broadened the definition of alternative trading systems to include certain cryptocurrency firms.
The SEC’s initial proposal, made in 2022, aimed to require some crypto companies to register as alternative trading systems, a move that drew significant criticism from the cryptocurrency sector amid concerns over increased oversight and additional regulatory burdens. Speaking to an audience of bankers, Uyeda expressed his belief that linking the regulation of Treasury markets with tighter controls on the crypto sector was misguided.
“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 in prepared remarks.
In addition to reconsidering the crypto-related aspects of the plan, Uyeda indicated that he has asked SEC staff to re-engage with the Treasury Department, the Federal Reserve, and market participants to discuss the original proposals aimed at regulating government securities alternative trading systems.
The 2022 proposal was part of a broader initiative under the previous Democratic leadership of the SEC to enhance investor protection by imposing a range of rules on the cryptocurrency sector. However, under the current Republican leadership, the SEC has established a crypto task force to reassess its approach to crypto regulation. The task force has already begun pausing or dismissing ongoing lawsuits against crypto firms.
This month SEC Commissioner Hester M. Peirce has appointed senior officials to the new Crypto Task Force. Richard Gabbert will serve as Chief of Staff, Taylor Asher as Chief Policy Advisor, and Michael Selig as Chief Counsel.
The task force consists of fourteen staff members from various SEC divisions and aims to find workable solutions to complex regulatory challenges in the crypto space. The first roundtable discussion on crypto regulation is scheduled for March 21.
Shogun Lin
