SEC Backs Down on Crypto Exchange Regulation in the US

The US Securities and Exchange Commission (SEC) is changing its approach to crypto. The agency is pulling back proposed rules for crypto exchanges. These rules were introduced when Gary Gensler led the SEC.

Mark Uyeda, the SEC's interim chairman, raised concerns. He said the rule's definitions were not clear. This lack of clarity might have included protocols that shouldn't be regulated.

The proposed rule would have forced crypto exchanges to register with the SEC. It was a part of the SEC’s new policies from the Trump era. Now, the SEC is rethinking this approach.

As a result, the SEC is dropping important cases against crypto firms. These include Kraken, Coinbase, and Robinhood. These cases focused on whether these firms offered unregistered securities.

The SEC’s Digital Currency Task Force is stepping up. Hester Peirce leads the task force. They plan to hold expert talks to study the issues with digital assets. They will look at the legal and policy questions.

These actions show the SEC’s changing view of the crypto world. The agency seems to be taking a more careful and thoughtful path. They want to understand the space better before making strict rules.