WASHINGTON, D.C. — The U.S. Securities and Exchange Commission is contemplating a temporary framework for cryptocurrency oversight that would enable companies to continue to innovate, even as the agency seeks a long-term regulatory solution for digital assets, according to interim Chairman Mark Uyeda at an event held Friday at the agency’s headquarters.
“We should evaluate if there’s a more effective approach to regulation within a flexible federal framework,” remarked Uyeda, in a recorded address at the latest roundtable focused on the crypto industry. “While the Commission formulates a lasting response to these matters, a conditional, temporary exemption framework for both registrants and non-registrants could foster increased innovation with blockchain technology in the U.S. in the near future.”
The securities regulator is awaiting Congress to pass a law that will establish a structure for the crypto market, allowing it to initiate the development of the rules long desired by the digital asset sector. This may come as soon as later this year, according to lawmakers involved with that initiative, but a considerable amount of time will likely elapse before it is enacted and even longer for the SEC and other affected federal entities to draft and implement regulations.
During this second crypto roundtable in a series organized as part of the agency’s reevaluation of its stance on digital assets, Uyeda held the reins of the agency, though Paul Atkins is set to assume the chairmanship soon. After his arrival, Uyeda and fellow Republican Commissioner Hester Peirce, who supports cryptocurrency, will remain in their positions.
The Republican commissioners pointed out the interest from crypto platforms in managing both activities traditionally overseen by the SEC and those that fall outside the agency’s jurisdiction, all under one umbrella.
“What immediate actions can we take, and what should Congress deliberate on in the future to ensure that regulatory voids are addressed as firms increasingly aim to blend trading of securities and non-securities?” queried Peirce, chair of the SEC’s Crypto Task Force.
The SEC’s only Democratic commissioner, Caroline Crenshaw, contended that recent market disruptions and corporate collapses have led to a “painful realization of the disparity between investor expectations and reality.”
“Crypto trading platforms are distinctive due to their ability to offer multiple services under one roof, sometimes providing bridge clearing and custody as well,” Crenshaw explained. In traditional finance, such operations are “generally conducted by separate registered entities,” given their inherent “high conflict risks and investor vulnerabilities.”
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