"The existing SEC, in its attempt to regulate the exchanges, has suppressed the market"
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Acting SEC Chair Mark Uyeda stated in a speech at the Washington Conference of the International Banking Institute on the 10th that "the SEC's past actions in defining exchanges too strictly and suppressing the market were a mistake" and that "the SEC is considering abolishing the provision that includes cryptocurrency exchanges in the definition of alternative trading systems (ATS)".
Previously, in 2020, then-SEC Chair Jay Clayton had included cryptocurrency exchanges in the ATS definition. Later, former SEC Chair Gary Gensler expanded on this provision and continuously attempted to enforce regulations on cryptocurrency exchanges in the US. Uyeda is now rejecting the SEC's previous actions.
Acting Chair Uyeda explained that "the previous ATS definition did not specify a clear new definition of an exchange, but only included the term 'communication protocol' in the provision" and that "the previous SEC leadership used this provision to claim regulatory jurisdiction over cryptocurrency exchanges".
After the Trump administration took office, the two main US regulatory agencies, the SEC and the Commodity Futures Trading Commission (CFTC), have significantly changed their regulatory approach towards the cryptocurrency market.
While the SEC has established a task force to define the market and enforce regulations, the SEC and CFTC have announced that they will end their conflict over regulatory authority and work together.
