The American Commission for Securities and Exchange could change or delete a rule proposed under the Biden Administration which would tighten the cryptography guard standards for investment advisers, according to the actor of the agency’s actor, Mark Uyeda.
In remarks prepared for a conference on the investment industry in San Diego on March 17, Uyeda said that the rule proposed in February 2023 had seen commentators expressing a “significant concern” concerning its “broad scope”.
“Given this concern, there may be important challenges to carry out the initial proposal. As such, I asked the SEC personnel to work closely with the crypto working group to consider the appropriate alternatives, including its withdrawal,” said Uyeda.
The rule was launched under the Biden administration during the mandate of Gary Gensler leading the regulator. He aimed to extend the care rules for investment advisers to all assets held for a customer, including crypto, and increased the requirements to protect them.
Source: SECOND
This meant that investment advisers should hold their customers’ crypto with a qualified goalkeeper. Gensler said at the time that investment advisers “could not count on” crypto platforms as qualified guards because of their operation.
The proposal provoked friction with Uyeda and Commissioner Hester Peirce, as well as the industry defense organizations which said that the rule was illegal and dangerous.
“How could an advisor seek to comply with this rule possibly investing customer funds in cryptographic assets after reading this version?” Uyeda pointed out at the time. However, he supported the proposal despite not agreeing “with a number of provisions”.
Peirce, who was the only commissioner of the five to vote against the rule, said at the time that the proposed rule “would extend the scope of guard requirements to cryptographic assets while probably shrinking the ranks of qualified cryptographic guards”.
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Uyeda’s latest remarks came a few days after declaring on March 10 that he had asked the staff of the dry “abandonment options” of a part of a proposal to pressure so that certain cryptographic companies register with the regulator as a exchange.
The dry of the Trump era also killed a rule that asked financial companies holding the crypto to record them as liabilities on their balance sheets, called SAB 121.
In December, President Donald Trump chose the former SEC commissioner Paul Atkins, to succeed Uyeda to chair the agency. It is now one more step, an audience in the Senate would have been scheduled for March 27.
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