Acting SEC Chair Mark Uyeda has proposed revisiting the expanded exchange definition in ATS Regulation affecting crypto platforms, deeming it excessive.
Criticism of Expanded Exchange Definition
Mark Uyeda, acting SEC chair, expressed skepticism about the expanded definition of 'exchange' which could include crypto platforms. He argued that linking Treasury market regulation with heavy-handed crypto market measures was a mistake.
History of ATS Regulation Changes
Initially developed years ago, ATS Regulation was revamped in April 2024 under Gary Gensler. It expanded 'exchange' to include 'communication protocols', which drew criticism from the crypto industry.
Implications for the Crypto Industry
The reaction from the crypto industry was largely negative, fearing it could bring excessive regulation to decentralized finance (DeFi). Uyeda directed SEC staff to explore options for eliminating the crypto-related portion of the rule.
Uyeda's remarks reflect an ongoing policy adjustment at the SEC under the Trump administration with further changes in crypto market regulation.
