SEC considers dropping controversial rule affecting crypto firms

A controversial rule that has expanded the definition of exchanges to include cryptographic companies can be abandoned as acting president of Securities and Exchange Commission of the United States, Mark Uyeda, calls for a reassessment.

The regulation in question is a 2020 rule originally designed to refine the monitoring of alternative trading systems, but was then extended by the former president of the dry, Gary Gensler, to cover cryptographic platforms.

Speaking At the conference of the Institute of International Bankers in Washington on March 10, Uyeda said that the expansion of the rule was an error and asked the SEC staff to explore the abolition of the crypto provisions.

Uyeda explained that the rule was initially intended to improve the transparency and monitoring of the titles of the ATSS government, but the dry under Gensler took it in a “very different direction”.

He underlined the wave made in the iteration in 2022 of the rule, which included “communication protocols” without clearly defining the term. This, he argued, could have inadvertently subject a wide range of platforms linked to the crypto to exchange regulations.

The revised rule, introduced under peopleler, could have forced certain cryptographic platforms to register in exchanges, even if they operated mainly as communication protocols or a decentralized network

Uyeda said it was an “error” to link the treasury market regulations to what he described as a “heavy attempt to repress the cryptography market”.

In addition, public comments on the enlarged definition of an exchange were extremely negative, according to Uyeda. As such, he ordered the SEC staff to examine the options to abandon this part of the proposal while revisiting the initial objective of regulating the titles of the ATSS government.

The comments of Uyeda came while the agency abandoned several cases of application of cryptography companies, in particular Gemini and Kraken, and launched A new working group focused on the development of clearer regulations for digital assets.

The agency seems to reassess several policies which previously put the crypto in its reticle, the measures of return to the back introduced during The mandate of peopleler. Under its direction, the SEC adopted an approach to the aggressive application, by launching 100 application cases against cryptographic companies.

As before reported By Crypto.News, the SEC also fell in its case of broker rule. On February 20, the agency withdrew its appeal against a decision of the Texas court which canceled the rule, which sought to classify certain DEFI platforms, liquidity suppliers and market manufacturers as concessionaires, subjecting them to registration requirements.