US Crypto Needs Quick Fix, Says Acting SEC Chair
Acting US Securities and Exchange Commission (SEC) Chair Mark Uyeda recently suggested a temporary, fast-tracked regulatory framework for the US crypto industry. This interim solution, he argues, would foster innovation while the SEC works towards a long-term regulatory plan.
Temporary Framework for Crypto Innovation
Uyeda proposed a "time-limited, conditional exemptive relief framework" for both registered and unregistered entities. This, he believes, could significantly accelerate blockchain technology development within the US. He made these remarks at the SEC’s April 11 Crypto Task Force roundtable, "Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading."
Addressing Immediate Challenges
Uyeda emphasized that this short-term approach is necessary while the SEC develops a comprehensive, long-term solution. The roundtable included discussions with key players like Uniswap Labs, Cumberland DRW, and Coinbase. A major concern highlighted was the inconsistent state-by-state regulation, which Uyeda warned could create a complex and inefficient "patchwork of state licensing regimes."
A unified federal framework, Uyeda explained, would simplify operations for firms offering tokenized securities and non-security crypto assets. Instead of navigating 50 different state licenses, they could operate under a single SEC license. He encouraged industry participation, requesting feedback on areas where "exemptive relief" would be most beneficial.
The benefits of blockchain technology were also emphasized. Uyeda highlighted blockchain's potential to improve the efficiency and reliability of securities transactions and to enhance capital efficiency and liquidity through tokenized collateral management.
Uyeda's Interim Role and Future of SEC Leadership
Uyeda will continue as acting SEC Chair until Paul Atkins, confirmed by the Senate on April 10th, is sworn in. Uyeda, widely viewed as a pro-crypto advocate, has overseen significant shifts in the SEC’s approach since taking over from Gary Gensler in January 2023. This includes suggesting a potential alteration or removal of a proposed rule tightening crypto custody standards for investment advisors.
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