| Key Points: – SEC Acting Chairman Mark Uyeda has halted a proposed rule that would have expanded SEC oversight of digital asset trading platforms. – New leadership, including SEC Chair Paul Atkins and CFTC Chair Brian Quintez, is shifting away from strict enforcement, pausing lawsuits against major crypto firms. |
The U.S. Securities and Exchange Commission (SEC) is reversing a regulatory effort that sought to expand its oversight of trading venues, including those dealing with digital assets, CoinDesk reported.
SEC Acting Chairman Mark Uyeda has requested that the agency halt the finalization of a proposed rule that would have brought certain “communications protocols” under SEC jurisdiction, potentially affecting a range of crypto-related platforms.
SEC Acting Chairman Reverses Course on Crypto Regulation
The rule, introduced in 2022, was part of a broader push under Democratic leadership to impose stricter regulations on the cryptocurrency industry. It aimed to align crypto trading platforms with existing financial market structures to enhance investor protection.
However, Uyeda criticized the proposal for linking Treasury market regulation with an aggressive approach to crypto oversight, calling it a “mistake.”
The SEC Acting Chairman has instructed SEC staff to reopen discussions with the Treasury Department, the Federal Reserve, and market participants to reassess the initial objectives behind regulatory changes affecting government securities alternative trading systems.
Crypto Task Force to Reevaluate Digital Asset Rules
Uyeda’s stance reflects a broader shift in crypto policy under the Trump Administration, which has appointed key figures supportive of the digital asset sector. Former PayPal executive David Sacks now serves as the administration’s “AI and crypto czar,” while former SEC Commissioner Paul Atkins has taken over as SEC Chair, and Brian Quintez leads the Commodity Futures Trading Commission (CFTC).
The leadership change has led to a significant policy overhaul. In January, the SEC launched a crypto task force to reassess regulatory approaches and has begun suspending or dismissing pending lawsuits against major crypto firms, including Coinbase, Kraken, Gemini, and Uniswap.
The task force, led by Republican Commissioner Hester Peirce, has scheduled its first roundtable discussion for March 21, 2025, under the theme “How We Got Here and How We Get Out – Defining Security Status.”
The event comes shortly after SEC staff determined that so-called meme coins fall outside securities laws. Peirce, a longtime critic of the SEC’s aggressive stance on crypto regulation, now has a leading role in shaping policy following the departure of former Chair Gary Gensler.
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