SEC Reverses Course on Crypto Regulation: Acting Chair Orders Rethink of Stricter Firm Rules

• SEC shifts crypto oversight, abandoning strict ATS registration proposal for firms.
• Uyeda aims to separate crypto and Treasury regulations, signaling a policy shift.
• Crypto firms see relief as SEC moves from enforcement to collaborative regulation.

The U.S. Securities and Exchange Commission (SEC) is making a significant move, changing its stance on crypto regulation. The acting chairman, Mark Uyeda, has instructed SEC staff to explore discarding a controversial proposal that would have required certain cryptocurrency firms to register as alternative trading systems. 

This move indicates a shift in regulatory priorities and marks a departure from the previous administration’s approach, which sought to impose stricter oversight on the crypto industry.

Origins of the 2022 Proposal

In 2022, the SEC proposed extending the definition of alternative trading systems (ATS) to include some crypto companies. This expansion was initially designed to enhance regulatory oversight in the Treasury markets but later encompassed digital assets. 

Related: SEC Drops Multiple Lawsuits and Investigations Against Crypto Firms—Here’s the List

The proposal faced im…

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