A change of proposed rule making pressure so that certain cryptographic companies register as a exchange could be abandoned under a new directive of the acting president of the American securities commission and the exchange.
During a speech on March 10 at the Washington Conference of the Institute of International Bankers, the acting president of the SEC, Mark Uyeda, said that he had “asked the SEC personnel of abandonment options” of part of the proposed modifications which would extend the regulation of alternative negotiation systems (ATSS) to include cryptographic companies.
“In the light of the important negative public commentary received on the definition of the exchange with regard to the crypto, I asked the staff of the dry options on the abandonment of this part of the proposal,” he said.
“In my opinion, it was an error for the Commission to link the regulation of the treasury markets with a heavy attempt to repress the cryptography market.”
Uyeda claims that the rule was initially designed in 2020 under the former president of the SEC, Jay Clayton, to establish simpler rules for alternative trading systems; The guidelines had to have an impact mainly on participants in the US Treasury market.
Source: American Commission for Securities and Exchange
However, when he came across the former SEC president, Gary Gensler, to implement the rule, he took a “very different direction” by widening the list beyond the ATSS.
“Rather than focusing on close issues relating to the titles of the ATSS government, a new iteration of the rule was proposed in 2022 which would redefine the regulatory definition of an exchange,” said Uyeda.
“The new definition of the term exchange included communication protocols without clearly defining what this term meant. Indeed, the largely extended definition of an exchange would have picked up various protocols used with regard to cryptographic assets, “he added.
In relation: Coinbase finds a defective analysis in the proposed exchange of the dry exchange
The time of people in the dry came with an aggressive regulatory position towards the crypto.
He reported more than 100 regulatory actions against companies from 2021 until his resignation on January 20, the same day that Donald Trump began his second term as American president. Trump had promised to dismiss people if he was elected.
After the resignation of Genlers, the SEC has since adopted a new, more friendly approach to the crypto. An increasing number of companies faced with a legal action of the regulator made their business reject, in particular the crypto exchange gemstones on February 26, Kraken on March 3 and the commercial company of Crypto Cumberland Drw on March 4.
Meanwhile, the agency also launched a working group on the crypto dedicated to the development of a framework for digital assets led by the friendly commissioner Hester Peirce.
Review: The U-turn of the dry on the crypto leaves key questions unanswered
