SEC may drop proposal to require crypto companies to register as exchanges

Odaily reports that SEC Acting Chair Mark Uyeda recently announced that he has instructed staff to explore abandoning the proposal to require crypto firms to register as exchanges. Uyeda stated: "The public has provided substantial negative feedback on expanding the definition of 'exchange' into the crypto realm, and it is a mistake to link the regulation of the U.S. Treasury market with the suppression of the crypto market." This rule was initially proposed by former SEC Chair Clayton in 2020, primarily targeting participants in the U.S. Treasury market. However, after Chair Gensler took office, the regulatory scope was significantly expanded to include cryptocurrency firms in the "exchange" definition, sparking controversy. After Gensler's resignation, the SEC's attitude towards the crypto industry has clearly become more friendly, withdrawing lawsuits against multiple crypto firms and establishing a dedicated working group led by crypto-friendly Commissioner Peirce to develop a regulatory framework for digital assets. (Cointelegraph)