SEC Withdraws Proposal to Expand Control Over Crypto Exchanges
In a surprising turn of events, the SEC has decided to backtrack on a proposal that could have extended its authority over crypto exchange platforms.
Acting Chair Mark Uyeda is leading the charge to rescind the rule initially introduced during Gary Gensler's tenure. This rule would have mandated registration with the agency for various trading platforms, including those handling digital assets.
The proposed change aimed to broaden the definition of an exchange by incorporating specific "communications protocols," potentially affecting numerous digital asset enterprises.
Uyeda voiced concerns about the vague definition, fearing it could subject protocols unintended for SEC oversight to regulatory scrutiny.
The rule, under deliberation for years and previously supported by Gensler, posed a looming threat to major exchanges. Fortunately, Uyeda has intervened, directing the agency to cease its pursuit of the contentious proposal.
This decision signals a pivot in the SEC's approach to crypto regulation following the appointment of new leadership by President Donald Trump. Revisiting or rolling back regulatory measures introduced during Gensler's tenure has become a recurring theme.
Simultaneously, the SEC has dismissed multiple enforcement actions against crypto companies. Notably, cases involving Kraken, Coinbase, Robinhood, and MetaMask have been dropped within the past week.
This shift underscores a notable evolution in the SEC's stance on crypto oversight.
Concurrently, the agency's Crypto Task Force, spearheaded by Commissioner Hester Peirce, is prioritizing industry collaboration. Renowned experts like Richard Gabbert, Michael Selig, Taylor Asher, and Sumeera Younis are part of this initiative.
Together, they will kick off the "Spring Sprint Toward Crypto Clarity" roundtables on March 21 to delve into compliance hurdles and digital asset policies.
As the SEC redirects its regulatory emphasis, the crypto industry eagerly anticipates how these adjustments will impact businesses within the sector.