The SEC’s proposal sought to have crypto firms register as exchanges, aiming to regulate the sector more stringently. Negative feedback has led to reconsideration of this directive, underlining potential regulatory shifts.
Acting Chair Mark Uyeda’s statements indicate a notable shift in the SEC’s focus, as he highlighted the negative public sentiment toward the initial approach linking crypto with Treasury markets.
Crypto Market Relief as SEC Eases Regulatory Stance
The abandonment could bring a breather to crypto markets, easing past regulatory tensions. This move is part of a series of actions reflecting a broader regulatory retreat from aggressive enforcement.
Positive reactions from industry stakeholders highlight optimism for collaborative policymaking, expecting regulatory clarity and investor protection improvements.
Previous SEC actions included enforcement pressures on notable companies like Coinbase and OpenSea. Pausing these measures reflects a potentially significant policy transformation.
Experts, including SEC Commissioner Hester Peirce, emphasize the importance of inclusive input from diverse stakeholders for effective crypto regulation, marking a new chapter in market oversight.
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation.” – Hester Peirce, Commissioner, SEC
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BlackRock Bitcoin ETF (IBIT) has made history as the most successful ETF launch ever, amassing over $50 billion in assets within just 11 months of its debut.
