The SEC is reconsidering its decision to classify crypto firms as alternative trading systems. This change comes in response to opposition over innovation risks.
SEC's New Approach to the Crypto Market
The proposed amendment aimed to expand the definition of alternative trading systems to include crypto companies. However, this faced resistance from DeFi representatives who feared such measures would harm innovation.
Impact on the Crypto Industry
In his speech at the Institute of International Bankers on March 10, 2025, Mark Uyeda noted that digital markets operate differently from traditional exchanges, and overly rigid rules could hinder their development.
Future Regulatory Prospects
The potential abandonment of strict measures could signal a softening of the SEC's stance towards the crypto market. The future regulation will depend on the recommendations of the SEC teams and the direction the agency takes under its future leadership.
While stepping back from strict measures doesn't guarantee softer regulation, it could indicate a search for a more suitable approach for crypto platforms. Companies await further developments.
