- SEC Acting Chairman Mark Uyeda is seeking to reverse a regulatory proposal that would have expanded the agency’s jurisdiction over crypto trading venues.
- Uyeda criticized the proposal for inappropriately linking Treasury market regulation with attempts to regulate the crypto market.
- The rule proposal was one of several made under former SEC Chair Gary Gensler that targeted cryptocurrency operations.
SEC Acting Chairman Uyeda is working to roll back a controversial regulatory proposal that would have expanded the agency’s oversight of cryptocurrency trading platforms. The rule, which has been in development for years, sought to redefine what constitutes an “exchange” to include digital asset businesses through the expansion of “communications protocols” terminology.
“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 remarks prepared for delivery on Monday to the Institute of International Bankers in Washington.
The acting chairman has specifically requested that SEC staff provide options for abandoning the cryptocurrency-related portion of the proposal. According to Uyeda, the definition of “communications protocols” in the proposal was insufficiently clear and would have captured various crypto asset protocols under SEC jurisdiction.
“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 added in his prepared remarks.
The regulation proposal is currently awaiting finalization at the agency, but Uyeda’s intervention signals a significant shift in the SEC’s approach to cryptocurrency regulation. The proposal was developed during the tenure of former chair Gary Gensler, whose aggressive regulatory stance toward the cryptocurrency industry has been a target for the new leadership appointed by President Donald Trump.
Industry participants had previously criticized the proposed rule as regulatory overreach, arguing that the SEC was exceeding its authority by attempting to bring decentralized finance (DeFi) operations under its regulatory umbrella through an expansion of the exchange definition.
The move represents one of the first concrete actions by the SEC’s new leadership to reverse the cryptocurrency regulatory agenda established during the Gensler era.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- REX-Osprey Files for First MOVE Token ETF as Movement Network Launches Public Mainnet Beta
- UK Treasury Rules Out Bitcoin Reserve, Cites Volatility Concerns
- BBVA to Launch Bitcoin and Ethereum Trading for Spanish Customers
- CoinDesk 20 Index Falls 7.2% as Crypto Market Sees No Gainers
- Crypto ETPs Record $876 Million in Outflows for Fourth Straight Week
