SEC Acting Chair Proposes Adjustments to New Rules for ATS Registration of Cryptocurrency Exchanges
SEC Acting Chair Mark Uyeda plans to modify a controversial proposal that requires digital asset exchanges to register under Alternative Trading System (ATS) rules. This proposal was introduced in 2022, aiming to broaden the definition of 'exchange' to fill regulatory gaps, but faced strong opposition from the industry, particularly from cryptocurrency exchanges like Coinbase, which believe it would severely limit their operational space.
Uyeda stated at the Washington International Bankers Association meeting that it is incorrect for the SEC to apply the regulatory approach used for the government bond market to the cryptocurrency market; the proposal should instead focus on ensuring that proprietary trading firms comply with regulatory standards parallel to those of banks and other financial institutions when trading U.S. government bonds.
He also pointed out that while alternative trading systems play a key role in securities and government bond trading, they also lack stringent transparency and investor protection standards, which could raise concerns about integrity and investor assurance in the context of complex financial instruments.
Currently, market participants are curious about when the new proposal or final rule votes will be released. However, regulatory reforms typically take months to materialize, or it may be after the Senate confirms Trump-nominated crypto-friendly Paul Atkins to lead the SEC that the market will see significant positive news!
In this context, amidst the challenges faced by prices and the overall market, Bitcoin's price yesterday briefly dipped below $76,600, dragging the overall market lower, with other crypto assets like Ethereum, XRP, Solana, and Cardano also suffering significant declines.
Furthermore, the turmoil in the cryptocurrency market is not only due to its own regulatory challenges but is also closely tied to macroeconomic uncertainties. The market is generally concerned that Trump's tariff measures could lead to an economic recession, and the business community has warned that these policies may have negative impacts on the industry and consumers.
In summary, the SEC's proposal adjustments, the volatility in the cryptocurrency market, and Trump's tariff policies all come together to create a perplexing situation for the overall market.
Do you agree with the SEC's implementation of stricter regulations on cryptocurrency exchanges? What impact will Trump's tariff policies have on the cryptocurrency market? Leave comments in the discussion section!
