SEC’s Dramatic Shift on Crypto Exchange Regulation
In a major development that could reshape the US crypto landscape, acting SEC Chair Mark Uyeda has announced plans to revise the controversial proposal requiring digital asset exchanges to register under Alternative Trading System (ATS) rules. This shift comes amid growing market uncertainty as Bitcoin tests critical support levels below $80,000.
Key Changes in Regulatory Approach
The original 2022 proposal aimed to expand the definition of an ‘exchange’ to address perceived regulatory gaps in crypto trading platforms. However, major industry players like Coinbase strongly opposed these measures, arguing they would severely restrict operations.
Speaking at the Institute of International Bankers conference, Uyeda acknowledged that the SEC had erred in attempting to apply Treasury market regulations to crypto markets. This admission marks a significant shift in the regulatory approach.
Market Impact and Price Analysis
The timing of this regulatory revision coincides with significant market volatility:
- Bitcoin: Down 13% over five days, trading below $79,000
- Ethereum: 5% decline
- XRP: 4% decrease
- Solana: 8% drop
- Cardano: 7% decline, with a 31% five-day plunge
Future Implications
The regulatory landscape remains uncertain as the industry awaits the confirmation of pro-crypto nominee Paul Atkins as SEC chair. This development, coupled with broader economic concerns including recession fears and aggressive tariff policies, suggests continued market volatility ahead.
Source: Bitcoinist