Speaking at the SEC’s recent “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading” roundtable, acting SEC Chair Mark Uyeda stressed the importance of quickly creating a “time-limited, conditional exemption relief” framework to deal with regulatory uncertainty in the crypto area. Uyeda and other well-known people in the industry, like Gregory Tusar from Coinbase and Katherine Minarik from Unswap Labs, said that while long-term rules are still being worked out, short-term steps could spark innovation across the U.S. blockchain scene.
Fighting State-Level Rule Disparity
Uyeda said that the “patchwork of state licensing regimes” that crypto firms in the U.S. must deal with is a significant worry. Businesses must get up to fifty different licenses because each state has its own rules and regulations. Uyeda thinks a “federal regulatory framework” would make compliance easier and let companies work with just one SEC license.
This method helps projects that use tokenized securities and non-security crypto assets. Right now, they have a hard time staying legal because state-level rules aren’t always consistent.
Blockchain Could Revolutionise Finance
Uyeda, who is known for being “pro-crypto,” talked again during the meeting about how blockchain could change things. He talked about how distributed ledger technology can make clearing and settling securities deals faster and easier. He also said blockchains can mobilize collateral as tokens, making financial markets more liquid and efficient with capital.
His words are very different from those of former SEC chair Gary Gensler, a known crypto sceptic. This suggests that the agency’s tone has changed.
Crypto Rulebook Change
Uyeda’s forward-looking views aren’t just about exemptive relief. He also made it sound like he might undo the planned rule from the Biden administration, which would have made it harder for investment advisers to keep crypto. He said, “I have asked the SEC staff to work closely with the crypto task force to look at appropriate alternatives, including pulling it.”
Conclusion
Uyeda’s plan to provide immediate regulatory relief while working on a comprehensive long-term framework could make the U.S. crypto business much more successful. His desire to talk to people, focus on new ideas, and fight against old rules shows a promising way to move forward.
