A streamlined temporary regulatory framework for cryptocurrency could enhance innovation in the US crypto sector while permanent regulations are still being developed, according to acting chair of the US Securities and Exchange Commission (SEC), Mark Uyeda.
“A time-limited, condition-based exemptive relief framework for both registered and unregistered entities could foster greater innovation in blockchain technology throughout the United States in the short term,” Uyeda noted during a roundtable discussion held by the SEC on April 11, dubbed “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.”
Relief measures may tackle immediate issues
During the roundtable with members of the agency and executives from the crypto industry, including representatives from Uniswap Labs, Cumberland DRW, and Coinbase, Uyeda indicated that this approach could serve as a temporary solution while the SEC works on a “long-term resolution.”
He expressed concerns about state-by-state regulation of crypto trading, warning that it could result in a “patchwork of state licensing regimes.”
Uyeda emphasized that a supportive federal regulatory structure would alleviate burdens for market participants looking to provide tokenized securities and non-security crypto assets, allowing them to function under a singular SEC license rather than managing “fifty different state licenses.”
He encouraged those in the crypto market to provide input on areas where “exemptive relief” might be suitable.
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Throughout the roundtable, Uyeda reaffirmed the advantages of blockchain technology in financial markets, stating, “Blockchain technology has the potential to execute and clear securities transactions more efficiently and reliably than existing methods.”
Uyeda to remain acting chair until Atkins is sworn in
“Blockchains can facilitate the management and mobilization of collateral in tokenized formats, enhancing capital efficiency and liquidity,” he added.
Uyeda will continue in his role as acting SEC chair until President Trump’s nominee, Paul Atkins, is officially sworn into the position.
The US Senate confirmed Atkins as chair of the SEC on April 10 with a 52-44 vote that largely followed party lines.
Uyeda has been acting SEC chair since January 20, following former chair and crypto skeptic Gary Gensler. He is generally viewed as a pro-crypto advocate within the industry.
Earlier this year, Uyeda indicated that the SEC could modify or revoke a rule proposed during the Biden administration intended to tighten crypto custody standards for investment advisers. “I have instructed the SEC staff to collaborate closely with the crypto task force to explore appropriate alternatives, including the potential withdrawal of this rule,” Uyeda mentioned.
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