WASHINGTON, March 10 (Reuters) – The acting head of the U.S. Securities and Exchange Commission (SEC) has instructed staff to explore alternatives to a plan that would have broadened the definition of alternative trading systems (ATS) to potentially include some cryptocurrency firms.
In 2022, the SEC proposed that certain crypto firms register as ATS, a move that drew criticism from the sector due to concerns over increased regulatory oversight and additional requirements. Acting Chairman Mark Uyeda announced to a gathering of bankers that he has directed staff to examine ways to abandon that specific element of the proposal, which has yet to be finalized.
Uyeda explained that this effort was an expansion of an earlier initiative focused on the trading of Treasury markets. According to his 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.”
Furthermore, Uyeda mentioned that he has requested SEC staff to restart discussions with the Treasury Department, the Federal Reserve, and market participants to review the original plans for regulatory changes concerning government securities ATS.
The 2022 proposal was part of a wider effort by the SEC, under the previous Democratic leadership, to better protect investors by applying a comprehensive set of rules and requirements to the cryptocurrency sector. However, under the present Republican leadership, the SEC launched a crypto task force in January to overhaul its crypto policy. The agency has also begun to pause or dismiss ongoing lawsuits against crypto firms.
