- SEC plans to abandon crypto exchange registration rule after industry pushback.
- Acting SEC Chair Uyeda signals a shift in crypto regulation under new leadership.
- Crypto firms see relief as SEC reconsiders expanded alternative trading system rules.
The U.S. Securities and Exchange Commission (SEC) implements different methods for regulating cryptocurrency. On March 10, 2025 Acting Chairman Mark Uyeda delivered a speech at Washington to instruct staff members to research potential ways to stop a proposed regulatory action. The proposed rule intended to turn certain crypto companies into alternative trading systems (ATSs) so they needed to register with the SEC. The crypto industry strongly opposed the regulatory strategy which led Uyeda to issue this responsive order.
The regulation emerged in 2020 from the leadership of former Chairman Jay Clayton to set guidelines for ATSs active in U.S. Treasury markets. The proposal underwent transformation when Gary Gensler became the SEC chair in April 2023 up until his departure in January 2025. Gensler increased the regulatory range during 2022 by extending definitions to cover crypto exchanges within his broader exchange classification. According to Uyeda the updated proposal created problems by linking Treasury marketplace regulations with crypto monitoring systems thus causing procedural challenges in oversight efforts.
Crypto Industry Gains Regulatory Relief
Recent developments signal a softer SEC stance toward cryptocurrency. Uyeda’s announcement follows a series of dismissed lawsuits against major crypto firms, including Gemini on February 26, Kraken on March 3, and Cumberland DRW on March 4, 2025. These actions reflect a pivot from Gensler’s tenure, during which the SEC pursued over 100 enforcement cases against the sector. The change aligns with new leadership priorities under President Donald Trump’s administration, inaugurated in January 2025.
The SEC also launched a crypto task force in January, led by Commissioner Hester Peirce, known for her crypto-friendly views. This group focuses on crafting a tailored digital asset framework. Meanwhile, Uyeda pushes for renewed talks with the Treasury Department and Federal Reserve to refocus ATS rules on government securities, separating them from crypto-related policies.
Implications for Cryptocurrency Regulation
The decision by Uyeda has the potential to transform operating procedures for crypto companies across the United States. The SEC’s decision to disband the ATS registration requirement enables the sector to grow through reduced compliance standards while stimulating innovation in the industry. The crypto market shows increasing optimism due to Trump’s crypto-friendly policy and discussions about the Bitcoin Strategic Reserve while industry experts witness this trend. Such moves hint at a broader acceptance of digital assets in federal policy.
Crypto firms like Ripple, still entangled in a long-standing SEC lawsuit, might benefit next. The outcome of this dismissal would likely create both positive market shifts and clearer regulatory guidelines for XRP. SEC’s developing strategy creates an opportunity for alleviating previous disputes by establishing stronger alliances with cryptocurrency enterprises throughout their uncharted journey.
