Listen up, the SEC just made a move that could change the game for cryptocurrency.
Acting Chairman Mark Uyeda is revisiting a contentious proposal from 2022 that aimed to classify certain crypto protocols as Alternative Trading Systems.
Rethinking of the rules
This isn’t just a tweak, it’s a full-on pivot in how the SEC approaches digital assets. But first, let’s take a step back.
The original proposal was like a puzzle piece that didn’t quite fit. It lumped crypto protocols into a category without clear definitions, leaving the market and the industry on edge.
Former Chairman Jay Clayton started this ball rolling, but Uyeda is hitting the brakes. He’s saying, “Hey, we need to rethink this.” And that’s a quite good news you know.
Viable legislation
Uyeda’s criticism is straightforward, the SEC was trying to fit a square peg into a round hole. He believes the previous approach was too heavy-handed, linking Treasury market regulations with crypto in a way that just didn’t make sense.
Now, he’s telling his team to go back to the drawing board and consider whether they should even move forward with these changes.
Uyeda is also considering ditching the part of the proposal that affects crypto altogether. Why? Because the public and industry stakeholders were loud and clear in their opposition.
They said it was regulatory overreach, failing to account for the unique tech behind crypto. Companies like ConsenSys and Coinbase were vocal, calling the proposal flawed and misguided.
New technology
This shift is a part of a broader change in how the SEC views crypto. They’re rolling back previous policies, dropping enforcement actions, and setting up a task force to better understand digital assets.
It’s like they’re finally saying, “Hey, we get it. Crypto is different, and we need to regulate it differently.
But the real question is, what does this mean for us? If you’re in the crypto space, it could mean more clarity and less regulatory uncertainty.
It’s a sign that the SEC is willing to listen and adapt, which is a big deal. It’s not just about rules, but finally it’s about understanding the technology and its potential.
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