The US Securities and Exchange Commission (SEC) will move away from requiring crypto firms to register as trading systems, the regulators’ acting chief said Monday. The decision is the latest of several decisions by the SEC in favor of the crypto industry, following years of an iron-fist approach.
Activing SEC Chief Mark Uyeda said Monday that the regulator will look at ways to abandon a plan that would have widened the definition of alternative trading systems to include some cryptocurrency firms. However, the plan has yet to be finalized. “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.
Mark Uyeda, SEC Changing Up Regulation for Crypto Firms
Uyeda 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.
In January, the SEC launched a crypto task force to overhaul its crypto policy and has begun pausing or dismissing pending lawsuits against crypto firms. Many firms, including Coinbase, Kraken, and Consensys, have seen their investigations or lawsuits dropped. Under the new Republican leadership headed by US President Donald Trump, the crypto industry has shined under the federal regulatory spotlight.
There are expectations that this kind of practice will only continue. Indeed, Ripple is looked at as a company that could be next in line. The company faced off against the agency in a years-long court battle. There is the belief that a dismissed lawsuit could be monumental for XRP and the crypto sector, as the next big move to send digital assets skyrocketing in value. Further, the arrival of a Bitcoin Strategic reserve in the US and a US crypto stockpile tags along with the SEC’s recent decisions to paint a bright future for cryptocurrency.