The SEC is changing its approach to regulating crypto exchanges. A proposed rule from former SEC Chair Gary Gensler aimed to broaden the definition of what an exchange is, which could have included some platforms not meant for SEC control.
Critics were concerned that this could lead to unintended regulation. Now, acting Chair Mark Uyeda has decided to withdraw this proposal, indicating a shift in the SEC’s regulatory stance.
This decision is part of a larger trend at the SEC under new leadership appointed by President Donald Trump. Recently, the SEC has also dropped at least six enforcement cases against major crypto companies like Kraken, Coinbase, Robinhood, and MetaMask. This suggests a reduction in regulatory pressure, which has been a concern for leaders and investors in the crypto industry.
In addition to these changes, the SEC’s Crypto Task Force, now led by Commissioner Hester Peirce, is taking a more cooperative approach to digital asset regulation.
The task force, which includes experts such as Richard Gabbert, Michael Selig, Taylor Asher, and Sumeera Younis, is planning a series of discussions called “Spring Sprint Toward Crypto Clarity.”
These roundtables will start on March 21 and will bring together policymakers, industry leaders, and legal experts to discuss regulatory challenges and the future of compliance in the crypto sector.
With these developments, the SEC seems to be moving away from the strict enforcement seen under Gensler. Instead, it is focusing on engagement and clarity. This change could significantly affect how crypto businesses operate in the U.S., possibly leading to a more open and innovation-friendly regulatory environment.
