SEC Policies Restrict Crypto Exchanges From Registering, Says Capital Markets Regulatory Commission

Key Points:

• Capital Markets Regulatory Commission reveals that SEC policies effectively prevent crypto exchanges from registering, citing restrictions on trading securities and compliance requirements.
• The report aligns with Promethium’s ATS hearing, where the project stated that token trading is not possible without SEC registration, emphasizing the challenges faced by crypto projects in navigating regulatory frameworks.

SEC regulation effectively precludes crypto exchanges from registering with the SEC, according to the Capital Markets Regulatory Commission.

In a recent development, the Capital Markets Regulatory Commission has released a research report highlighting how the Securities and Exchange Commission’s (SEC) policies effectively hinder crypto exchanges from registering with the SEC. The report sheds light on two key reasons behind this issue.

Firstly, the SEC’s rules and guidance limit the registration of digital assets as securities, rendering them ineligible for trading on registered stock exchanges. Consequently, the number of encrypted assets that can be listed and traded on crypto asset trading platforms registered as stock exchanges is practically nonexistent.

Secondly, even if crypto assets were to be registered as securities, the existing SEC regulations and guidance create significant hurdles for crypto asset trading platforms to comply with the requirements applicable to stock exchanges. This further impedes their ability to register and operate within the SEC‘s framework.

Fox Business reporter Eleanor Terrett shared the report on Twitter, emphasizing how it aligns with the recent news surrounding Promethium. Promethium’s legal head, Rodrigo, mentioned during a hearing that their Alternative Trading System (ATS) would be unable to trade any tokens unless they were first registered with the SEC. This statement highlights the challenges faced by projects like Promethium in navigating the regulatory landscape.

Commenting on the matter, Matt Walsh likened Promethium’s ATS to a bicycle without wheels, reflecting the limitations imposed by SEC regulations on trading tokens without proper registration.

The research report from the Capital Markets Regulatory Commission provides valuable insights into the regulatory hurdles faced by crypto exchanges and projects operating in the digital asset space. These findings shed light on the need for further dialogue and potential regulatory reforms to foster innovation while ensuring investor protection in the evolving crypto landscape.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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