A controversial rule that has expanded the definition of trade fairs with crypto companies can be abandoned if the American effects and exchange committee calls on acting chairman Uyeda for a reassessment.
The regulations in question is a 2020 rule that was originally designed to refine supervision of alternative trade systems, but was later widened under former SEC chairman Gary Genler to cover crypto platforms.
Speaking At the Institute of International Bankers’ Washington Conference on 10 March, Uyeda said that the rule’s expansion was a mistake and asked SEC staff to drop the crypto-related provisions.
Uyeda explained that the rule was initially intended to improve the transparency and supervision of ATSS of the government, but the SEC under Genler took it in a ‘very different direction’.
He pointed out the vague formulation in the ITERATION of the Rule 2022, which included “communication protocols” without clearly defending the term. This, he led, could unintentionally subject a wide range of crypto-related platforms to exchange instructions.
The revised rule, introduced under Gensler, could have forced certain crypto platforms to register as exchanges, even if they mainly worked as a communication protocols or decentralized network
Uyeda said it was a ‘error’ for the SEC to link the regulations of the Treasury Market to what he described as a ‘harsh attempt to stamp the cryptomarkt’.
Furthermore, public feedback on the extensive definition of an exchange was overwhelming negative, according to Uyeda. As such, he has ordered SEC -employees to investigate options to leave this part of the proposal and at the same time look at the original purpose of regulating the ATSS of the government effects.
Uyeda’s comments come when the agency has dropped various enforcement cases against crypto companies, including Gemini and Kraken, and has launched a new Task Force that is aimed at developing clearer regulations for digital assets.
The agency seems to be recovering various policy measures that previously placed Crypto in his sights, and rolling measures that are introduced during the term of office of Gensler. Under his leadership, the SEC has followed an aggressive enforcement approach and launched more than 100 enforcement cases against crypto companies.
As previously reported by crypto.news, the SEC has also taken a step back in the case of the broker dealer. On February 20, the Agency appealed his appeal against a decision of the court in Texas who brought down the rule, who wanted to classify certain Defi platforms, liquidity providers and market makers as dealers who subject them to registration requirements.
