A proposed rule change pushing for some crypto firms to register as exchanges could be abandoned under a new directive from the acting chairman of the US Securities and Exchange Commission. During a March 10 speech at the Washington Conference of the Institute of International Bankers, acting SEC Chairman Mark Uyeda said he had “asked SEC staff for options on abandoning” part of the proposed changes that would expand regulation of alternative trading systems (ATSs) to include crypto firms.“In light of the significant negative public comment received on the definition of exchange with respect to crypto, I have asked SEC staff for options on abandoning that part of the proposal,” he said.“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 says the rule was initially crafted in 2020 under former SEC Chairman Jay Clayton to establish more straightforward rules for alternative trading systems; the guidance was intended to mainly impact US Treasury market participants.
Source: US Securities and Exchange CommissionHowever, when it fell to former SEC Chair Gary Gensler to implement the rule, he took a “very different direction” by expanding the list beyond just ATSs.“Rather than focusing on the narrow issues relating to Government Securities ATSs, a new iteration of the rule was proposed in 2022 that would redefine the regulatory definition of an exchange,” Uyeda said.“The new definition of the term exchange included communications protocols without clearly defining what that term meant.
Related: Coinbase finds flawed analysis in SEC's proposed exchange definitionGensler’s time at the SEC came with an aggressive regulatory stance toward crypto. He brought upward of 100 regulatory actions against firms from 2021 until his resignation on Jan.20, the same day as Donald Trump started his second term as US president.
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Author / Journalist: Cointelegraph by Stephen Katte
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