SEC Takes Action for Anti-Cryptocurrency Rule Left Over from the Gary Gensler Era, They Are Changing It!

The U.S. Securities and Exchange Commission (SEC) is reconsidering a regulatory proposal aimed at expanding its oversight over cryptocurrency trading platforms.

Acting Chairman Mark Uyeda announced his intention to narrow down the initiative, which requires certain digital asset businesses to register with the institution.

The proposal, which has been in development for years and is awaiting finalization, aimed to expand the definition of trading places under the SEC's jurisdiction. However, Memberda instructed SEC staff to halt progress in this direction of rulemaking.

"In my view, it was a mistake for the commission to link the regulation of the Treasury markets with a heavy-handed attempt to suppress the crypto market," Uyeda said in a speech prepared for the International Bankers Institute in Washington. He cited intense public opposition to the SEC's proposal to expand the definition of an exchange as the main reason for the reconsideration.

The rule would redefine certain "communication protocols" as exchanges; As Uyeda argued, this move was poorly determined and could have inadvertently caught up with various crypto-related technologies. "The proposal would cover the various protocols used in relation to crypto-assets," he said.

The initial proposal was one of several regulatory efforts spearheaded by former SEC Chair Gary Gensler, whose approach to cryptocurrency regulation has come under fire. The shift in policy direction comes as the SEC has undergone leadership changes following President Donald Trump's recent appointments.