The acting chief of the US Securities and Exchange Commission said on Monday he has directed staff to look at ways to abandon a plan that would have widened the definition of alternative trading systems to include some cryptocurrency firms.
The SEC in 2022 proposed requiring some crypto firms to register as alternative trading systems, drawing criticism from the sector in the face of potentially heightened oversight and additional rules. Acting Chairman Mark Uyeda told an audience of bankers he has instructed staff to look at ways to abandon that portion of the plan, which has yet to be finalised.
It was an expansion of an earlier effort aimed at trading of Treasuries markets, Uyeda said in prepared remarks.
“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 said.
He said he has also asked SEC staff to renew discussions with the Treasury Department, the Federal Reserve, and market participants to consider the original plans for regulatory changes on the government securities alternative trading systems.
The 2022 proposal was part of a broader effort by the SEC under Democratic leadership to better protect investors by subjecting the crypto sector to a host of rules and requirements.
Under Republican leadership, the SEC in January launched a crypto task force to overhaul its crypto policy and has begun pausing or dismissing pending lawsuits against crypto firms.