SEC: US Crypto Industry Needs Quick Fix, Long-Term Solution Later

Uyeda says the U.S. crypto sector needs a quick fix for now, with comprehensive solutions to follow later.

Mark Uyeda, the Acting SEC Chair, encouraged the crypto community to provide input on where exemptions to current rules might be appropriate.

Uyeda noted that a fast-track, short-term crypto framework could fuel innovation in the industry as the U.S. continues working on permanent regulatory solutions.

“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading.”

At a roundtable discussion with SEC representatives and figures from the crypto industry, including Uniswap’s Katherine Minarik, Chelsea Pizzola of Cumberland DRW, and Gregory Tusar from Coinbase, Uyeda described this as a possible near-term remedy while a lasting solution is in progress.

He pointed out that allowing each state to set its own crypto trading rules could result in a confusing patchwork of licensing standards.

Uyeda noted that a clear federal regulatory system would make it easier for crypto firms offering tokenized securities and other assets to avoid the complexity of securing separate licenses in every state.

He encouraged feedback from the crypto community on potential areas where “exemptive relief” could apply.

During the discussion at the roundtable, Uyeda reaffirmed the importance of blockchain technology in enhancing financial markets.

“Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” Uyeda said.

“Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity,” he added.

The US Senate confirmed Atkins as the new SEC chair on April 10, with a 52-44 vote primarily divided along party lines.

Since January 20, Uyeda has served as the acting SEC chair, succeeding Gary Gensler, who had served as chair and criticized crypto.

He has gained a reputation within the industry as a strong supporter of crypto.

A report on March 18 revealed that Uyeda noted the SEC could change or revoke a rule proposed under the Biden administration to enhance crypto custody regulations for investment advisers.

“I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said.