- Acting SEC Chair Uyeda proposes temporary crypto regulatory framework to foster innovation while permanent rules are developed.
- The temporary framework could address concerns about state-by-state regulation creating a burdensome “patchwork” of licensing requirements.
- Uyeda highlighted blockchain’s potential to improve efficiency in securities transactions during the SEC’s Crypto Task Force roundtable.
Acting SEC Chair Mark Uyeda has proposed a fast-tracked temporary regulatory framework for cryptocurrency that could boost innovation while permanent regulations are being developed. The suggestion came during the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” where Uyeda said this approach could allow “greater innovation with blockchain technology within the United States in the near term.”
The roundtable brought together SEC officials and industry executives, including representatives from Uniswap Labs, Cumberland DRW, and Coinbase. Uyeda expressed concern about the challenges of state-by-state regulation, warning it could create a cumbersome “patchwork of state licensing regimes” for crypto businesses to navigate.
Benefits of Federal Framework Over State Regulations
Uyeda emphasized that a cohesive federal regulatory framework would significantly reduce burdens for market participants offering tokenized securities and non-security crypto assets. Such a framework would allow companies to operate under a single SEC license instead of securing “fifty different state licenses.” He also encouraged industry stakeholders to provide feedback on areas where “exemptive relief” might be appropriate.
During the discussion, Uyeda reiterated blockchain technology’s potential benefits for financial markets. “Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” he stated, adding that “Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity.”
Leadership Transition at the SEC
Uyeda will continue serving as acting chair until President Donald Trump‘s nominee, Paul Atkins, is officially sworn in. The U.S. Senate confirmed Atkins as the new SEC chair on April 10 in a 52-44 vote that largely followed party lines.
Since taking over from former chair and crypto skeptic Gary Gensler on January 20, Uyeda has been viewed within the industry as more supportive of cryptocurrency development. On March 18, Uyeda indicated that the SEC might reconsider or withdraw a Biden administration rule proposal that would tighten crypto custody standards for investment advisers, stating, “I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal.”
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