The SEC could exclude crypto companies from registration as securities brokers
The U.S. Securities and Exchange Commission is analyzing the definition of a broker and regulations regarding crypto companies to decide whether to exclude them from the requirement to register as securities dealers.
Amid discussions about the creation of a bitcoin fund in the United States and the ups and downs in the price of the market’s leading cryptocurrency, acting SEC Chairman Mark Uyeda asked staff to abandon “a rule change that would expand the definition of alternative trading systems to include cryptocurrencies.”
This change would require crypto companies to register as brokers. However, during a speech on Monday, March 10, at the Institute of International Bankers Conference in Washington, Uyeda addressed his request to the agency’s staff to abandon some of the proposed changes.
The acting SEC chairman stated, “In light of the significant negative public comments received regarding the definition of exchange as it relates to cryptocurrencies, I have asked the SEC staff for options for abandoning that portion of the proposal.”
The precedent for the regulatory overhaul dates back to 2020 under SEC Chairman Jay Clayton. The goal was to “establish clearer rules for alternative trading systems; the guidance was primarily intended to impact U.S. Treasury market participants.”
“However, when the rule fell to former SEC Chairman Gary Gensler, he took a very different direction by expanding the list beyond ATSs.”
Two years later, in 2022, a proposal for a new version of the rule was released that would redefine the concept of a securities broker-dealer, which included communication protocols, but without clearly defining the term. The SEC is now handling Uyeda’s request, while court cases against crypto companies are underway, along with the creation of “a dedicated cryptocurrency task force to develop a regulatory framework for digital assets, led by Pro-Crypto Commissioner Hester Peirce.”
M.Pino
Source: cointelegraph
(Reference image: Kanchanara on Unsplash)
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