SEC Moves to Reverse Proposal Expanding Exchange Rules to Crypto

Acting Chair Mark Uyeda calls for abandoning efforts to include crypto firms in broader exchange regulations, signaling a shift in the agency's approach.

• The SEC is reconsidering a 2022 proposal to expand the definition of exchanges to include certain crypto firms and protocols.
• Acting SEC Chair Mark Uyeda criticized the earlier proposal, calling it a 'mistake' to link Treasury market regulations with crypto oversight.
• The proposal, introduced under former SEC Chair Gary Gensler, faced significant industry backlash for its potential impact on decentralized finance (DeFi) and other crypto platforms.
• Uyeda has directed staff to explore options to abandon the crypto-related aspects of the proposal and renew discussions on Treasury market regulations.
• The SEC, now under Republican leadership, has shifted toward a more collaborative approach to crypto regulation, including the formation of a crypto task force led by Commissioner Hester Peirce.

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