Mark Uyeda, who is currently serving as the Acting Chair of the US Securities and Exchange Commission (SEC), has called on participants in the crypto industry to share their feedback on a new framework. This initiative aims to reduce the regulatory burden on digital asset trading.
During the SEC’s Crypto Task Force roundtable on April 11, Uyeda noted the increasing gap between existing regulations and the advancements in blockchain technology.
He suggested that the development of crypto markets is akin to the early stages of securities trading in the US, which began under a tree in New York City. Uyeda emphasized the need for regulators to establish frameworks that match the unique structure of crypto platforms, where custody, execution, and clearing functions are integrated due to blockchain technology.
Uyeda highlighted the benefits of this integrated system, such as enhanced transparency, efficiency, and speed in trading. He also pointed out advantages like continuous trading through smart contracts and improved collateral management through tokenization.
Despite the potential benefits, Uyeda acknowledged that the current securities laws did not anticipate decentralized systems like blockchain, leading to compliance issues with unregistered tokenized securities. He also mentioned the complexity of applying existing rules in hybrid trading environments that involve both on-chain and off-chain systems.
Uyeda criticized the decentralized state licensing requirements that hinder nationwide operations for crypto firms and proposed a conditional relief framework that would enable experimentation while safeguarding investors. He suggested that a unified federal licensing model under the SEC could simplify compliance and ensure market consistency.
He stated that a federal regulatory framework could encourage market participants to offer trading in both tokenized securities and non-security crypto assets under a single SEC license, rather than obtaining licenses from fifty different states.
Uyeda invited industry experts to identify areas where regulatory relief could enable practical applications without compromising market integrity. These comments indicate the SEC's recognition of the need for digital asset regulation evolution, with the proposed relief framework promoting innovation within a secure market environment.