Acting SEC Chair Mark Uyeda suggested that the commission might alter or withdraw the proposed Biden-era crypto custody rule during an industry conference.
Pushback From Commissioners and Industry Players
The proposal received criticism from both SEC commissioners and industry advocacy groups. Uyeda himself had previously questioned its feasibility, stating that it could discourage investment advisers from offering crypto services. Despite his reservations, he initially supported the proposal but disagreed with a number of its provisions. Commissioner Hester Peirce was the only member of the five-person commission to vote against the rule, warning that it would reduce the number of qualified crypto custodians and create regulatory barriers that could drive firms out of the U.S. market.
Trump-Era SEC Signals Softer Crypto Stance
Uyeda's comments are part of a broader shift under the Trump-era SEC, which has already rolled back several Gensler-led crypto measures. On March 10, Uyeda revealed he asked the SEC staff to explore options to abandon another rule that would require some crypto firms to register as exchanges.
Potential Regulatory Changes
In December, Donald Trump nominated former SEC Commissioner Paul Atkins to replace Uyeda as chair. With a Senate hearing reportedly set for March 27, the commission's crypto policies could face further shake-ups, potentially marking a friendlier regulatory environment for the industry.
The discussed changes at the SEC could influence cryptocurrency industry regulations, potentially easing requirements for companies and creating a more business-friendly environment.
