The U.S. Securities and Exchange Commission (SEC) is reconsidering its regulatory approach to cryptocurrency firms. On March 10, Acting Chair Mark Uyeda announced that the agency is evaluating the abandonment of a proposal that would require certain digital asset platforms to register as Alternative Trading Systems (ATS). This marks a potential shift in how crypto firms are classified and regulated.
A Change in Regulatory Approach
The original proposal, introduced in 2022, aimed to expand the SEC’s oversight of the crypto industry by broadening the definition of ATS to include digital asset platforms. This move was initially tied to a broader initiative to regulate the Treasury markets. However, Uyeda now acknowledges that linking these two regulatory efforts was a mistake.
Speaking at the 2025 Annual Washington Conference of the Institute of International Bankers, Uyeda emphasized that heavy-handed regulatory measures should not be used to suppress the crypto industry. Instead, he directed SEC staff to explore ways to abandon this provision, though a final decision has not yet been reached.
The crypto industry, which has long pushed back against stringent SEC regulations, welcomed this development. Bill Hughes, a lawyer at Consensys, called Uyeda’s statement "heartening," particularly in relation to decentralized finance (DeFi) platforms that would have been affected by the ATS classification.
The U.S. House Committee on Financial Services also expressed approval, reinforcing the idea that crypto regulations should be revisited in a more balanced manner.
Uyeda’s comments suggest a broader shift in SEC policy, with a greater emphasis on collaboration with other agencies and input from market participants. Commissioner Hester Peirce echoed this sentiment, highlighting ongoing discussions between the SEC and the Commodity Futures Trading Commission (CFTC) on crypto regulation.
The SEC’s Crypto Task Force, led by Peirce, plans to hold public roundtables to gather feedback from industry stakeholders. These discussions aim to create a more transparent regulatory environment, addressing concerns related to staking, exchange-traded products (ETPs), and other digital asset-related issues.
The Need for Regulatory Clarity
The evolving stance of the SEC aligns with broader concerns in the crypto industry regarding regulatory clarity. Many executives believe clear policies on securities classification, taxation, and institutional adoption are essential for fostering innovation and stability in the market.
While the SEC has yet to finalize its decision on firm registration requirements, Uyeda’s remarks signal a departure from previous enforcement-driven approaches. If this shift leads to more balanced and well-defined regulations, it could mark a significant turning point for the U.S. crypto market.
HODL Team
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