Acting Chairman Mark Uyeda recently announced that the United States Securities and Exchange Commission (SEC) is taking steps to abandon a 2022 proposal that would have required certain crypto firms to register as alternative trading systems. If successful, this would mean that crypto businesses in the U.S. would no longer seek SEC registration.
SEC Seeks to Abandon Initial Plan
Speaking to an audience of bankers, Uyeda stated that he had directed SEC staff to explore ways to remove the crypto-related portion of the plan, which has yet to be finalized. The 2022 proposal was a regulatory push under Democratic leadership aimed at tightening oversight of the crypto industry and imposing additional investor protection measures.
Notably, The proposal was initially designed to regulate trading in Treasury markets but was later expanded to include some crypto platforms. According to a Reuters report, Uyeda criticized this move, stating:
“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.”
He also noted that he has instructed SEC staff to restart discussions with the Treasury Department, the Federal Reserve, and market participants to reconsider regulatory changes for government securities alternative trading systems.
Meanwhile, the crypto community shares the same sentiments as Uyeda. The sector resisted what it viewed as excessive regulation, arguing that the rules would stifle innovation. Uyeda’s recent decision to reevaluate the plan excites the digital asset industry as it suggests a shift in the SEC’s approach to crypto regulation.
U.S. Becomes More Crypto-Friendly
Aside from the abandonment plan, the new administration under President Donald Trump has witnessed other crypto-friendly regulatory reforms. The U.S. SEC has scaled back several aggressive enforcement actions implemented under previous Gensler leadership.
These include pausing halting lawsuits against major crypto firms and reversing guidelines that previously hindered banks from holding crypto. These changes have been driven by establishing a dedicated crypto task force and the appointment of commissioners who favor a more crypto-friendly approach.
Additionally, the Trump administration has also introduced measures to strengthen the nation’s financial strategy, including creating a proposed strategic crypto reserve funded by assets seized through legal forfeiture.
In response to this development, crypto firms are becoming more interested in the country. Tether, the largest crypto company, plans to expand in the U.S. Coinbase CEO Brian Armstrong recently disclosed the American firm’s plan to employ 1,000 staff, saying, “President Trump has breathed life back into the crypto industry.”
