SEC considers scrapping plan to widen alternative trading systems definition

Investing.com -- The acting chief of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, announced on Monday that he has directed his staff to explore ways to abandon a proposal that would have expanded the definition of alternative trading systems to include certain cryptocurrency firms.

In 2022, the SEC proposed that some cryptocurrency firms should register as alternative trading systems. This suggestion faced opposition from the sector due to the prospect of increased oversight and additional regulations. Uyeda stated that he has instructed his staff to consider abandoning this part of the proposal, which has not yet been finalized.

The proposal was an extension of an earlier initiative aimed at the trading of Treasury markets, Uyeda explained in his prepared remarks. He expressed his belief that it was a mistake for the Commission to connect the regulation of the Treasury markets with an attempt to regulate the crypto market.

Uyeda also mentioned that he has requested the SEC staff to resume discussions with the Treasury Department, the Federal Reserve, and market participants to reconsider the original plans for regulatory changes on the government securities alternative trading systems.

The 2022 proposal was part of a wider effort by the SEC, under Democratic leadership, to better safeguard investors by imposing a series of rules and requirements on the crypto sector. However, under Republican leadership, the SEC initiated a crypto task force in January to revamp its crypto policy and has started to pause or dismiss pending lawsuits against crypto firms.

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