- Mark Uyeda instructed staff to renew talks with Treasury and the Federal Reserve to reassess original plans for government securities trading systems.
- The SEC under Uyeda’s leadership paused lawsuits against crypto firms and launched a task force to revise crypto policies.
Mark Uyeda, announced on Monday that he has instructed staff to abandon a portion of a 2022 proposal that sought to expand the definition of alternative trading systems (ATS) to include certain cryptocurrency firms. The move marks a shift in regulatory strategy under the SEC’s new Republican leadership.
The 2022 proposal, introduced under Democratic leadership, aimed to require some crypto firms to register as ATS, subjecting them to stricter oversight. The plan drew criticism from the crypto sector, which argued it would impose excessive compliance costs and stifle operations. Uyeda, however, stated the proposal’s approach was flawed.
“In my view, it was a mistake for the Commission to link together regulation of the Treasury markets with a heavy-handed attempt to tamp down the crypto market,” he said during remarks to bankers.
Uyeda emphasized the 2022 plan had been an expansion of earlier efforts to regulate Treasury markets, and he directed staff to refocus on the original purpose of those changes. He also ordered renewed discussions with the Treasury Department, the Federal Reserve, and market participants to reassess the regulatory framework for government securities ATS.
The SEC’s pivot aligns with broader policy shifts under Republican leadership. In January, the agency launched a crypto task force to review and revise its approach to cryptocurrency regulation. This includes pausing or dismissing ongoing lawsuits against crypto firms that were initiated under prior administrations.
Uyeda’s directive underscores a departure from the SEC’s earlier strategy of expanding oversight into crypto markets. While the 2022 proposal had not yet been finalized, its abandonment signals a preference for narrower regulatory actions.
The changes reflect ongoing debates over balancing investor protection with industry growth. Crypto firms, which faced heightened scrutiny under Democratic leadership, now encounter a more measured regulatory environment. However, the SEC’s revised approach remains subject to further review and final approval by the commission.
Uyeda’s actions highlight the influence of political shifts on regulatory priorities, with the SEC now prioritizing targeted reforms over broader crypto-sector interventions.
