Catenaa, Tuesday, March 11, 2025-Acting US Securities and Exchange Commission Chair Mark Uyeda signaled a major shift in crypto policy, announcing that the agency may abandon part of a proposed rule that could have subjected decentralized exchanges to stricter regulations.
Speaking at the 2025 Annual Washington Conference of the Institute of International Bankers on Monday, Uyeda said he directed SEC staff to review the controversial Regulation ATS proposal, which sought to expand the definition of an “exchange” to include crypto-related protocols.
The rule had been pushed under former SEC Chair Gary Gensler, linking Treasury markets regulation with crypto oversight.
“Effectively, the vastly expanded definition of an ‘exchange’ would have picked up various protocols used with respect to crypto assets,” Uyeda said.
“In my view, it was a mistake for the Commission to link together regulation of the Treasury markets with a heavy-handed attempt to tamp down the crypto market.”
The proposed rule would have required DeFi projects to register with the SEC and submit mandatory filings, a move that drew widespread criticism from the crypto industry.
Uyeda acknowledged the significant public opposition, stating he asked SEC staff for options to drop that part of the proposal.
The decision is the latest reversal under the Trump administration. Since taking office, the new SEC leadership has rescinded key crypto-related policies, ended enforcement actions against major industry players, created a crypto task force, and issued statements on memecoins.
