A controversial rule, which expands the definition of exchanges to include crypto firms, can be abandoned as Mark Uyda, Acting Chairman of the US Securities and Exchange Commission.
Regulation in the question is a 2020 rule designed to refine the inspection of alternative trading systems, but was later broadcast under former SEC President Gary Genslar to cover the crypto platforms.
Speaking At the Institute of International Bankers Washington Conference on 10 March, Uyda said that the rule was a mistake and SEC employees have been asked to give up crypto-related provisions.
Uyda reported that the rules were initially to improve the transparency and inspection of the ATS of government securities, but under the SEC, Gennser took it “in a very different direction”.
He pointed to vague wordless in 2022 recurrence of the rule, including “communication protocol” without clearly defining the word. This, he argued, unknowingly may be subject to a wide range of crypto-related platforms to exchange rules.
The revised rules introduced under Gensler, could force some crypto platforms to register as exchanges, even if they are mainly operated as communication protocols or decentralized networks
Uyda said it was a “mistake” for SEC to tie Treasury Market rules, which he had described as “a huge attempt to reduce the Crypto market”.
In addition, the public response to the extended definition of an exchange was highly negative, according to Uyada. Thus, he has instructed the SEC staff to re -start the options to release this part of the proposal, launching the original goal of regulating government securities ATS.
Uyda’s comments come as the agency has dropped several enforcement cases against crypto firms including Gemini and Crackon, and launched a new task force focused on developing clear rules for digital assets.
The agency appears to be assuring several policies, which first puts the crypto in their crosshare, withdrawing measures started during Gensor’s tenure. Under his leadership, SEC took an aggressive enforcement approach, launching more than 100 enforcement cases against crypto firms.
As stated by Crypto.news earlier, SEC has also stepped back in its broker-dealer rule case. On 20 February, the agency withdrew its appeal against a Texas Court verdict, which killed some DEFI platforms, liquidity providers and market makers as dealers, subject to registration requirements.
