The rapidly tracked temporary cryptographic regulatory framework could strengthen innovation within the US crypto industry, but permanent regulations are still ongoing, says Mark Ueda, chairman of the Securities and Exchange Commission.
“The time-limited conditional exemption framework for subscribers and non-registered users could enable innovation in blockchain technology within the US in the short term,” Uyeda said in the SEC's April 11 Crypto-Trade, titled “Blocks and Hard Places: Coordination Regulations for Crypto Trade.”
Relief measures may address immediate challenges
Uyeda said this could be a short-term answer as the SEC works towards a “long-term solution” in a roundtable discussion with SEC members and crypto industry executives, including Katherine Minarik of Uniswap Labs, Chelsea Pizzola of Cumberland Drw and Gregory Tusar of Coinbase.
He flagged state-by-state regulations on crypto trading as concern, warning that it could lead to a “patchwork of the state's licensing system.”
Uyeda said the favourable federal regulatory framework will ease the burden on market participants who want to provide symbolized securities and non-security crypto assets, allowing them to operate under a single SEC license instead of navigating “licensings in 50 different states.”
He urged crypto market participants to share feedback on areas in which “exempt relief” may be appropriate.
Source: US Securities and Exchange Commission
Uyeda also reiterated the benefits of blockchain technology in financial markets during roundtable discussions.
“Blockchain technology offers the possibility to execute and clear securities transactions in a more efficient and reliable way than current processes,” Uyeda said.
Weda fills the chair position until Atkins is sworn in
“Blockchain can be used to manage and mobilize tokenized forms of collateral, increasing capital efficiency and liquidity,” he added.
Ueda will continue to serve as SEC chair until US President Donald Trump candidate Paul Atkins is officially sworn in.
On April 10, the US Senate confirmed Atkins as SEC chair by 52-44 votes, primarily along the party line.
Related: SEC, Ripple File Joint Moves to Pause Appeal in XRP
Weda has been chairman of the Acting SEC since January 20th, replacing former chairman and code skeptical Gary Gensler. He is widely seen within the industry as a procrypt advocate.
On March 18, Cointelegraph reported that UYEA said the SEC could change or discard the proposed rules under the Biden administration, which strengthens cryptocurrency control standards for investment advisors.
“We have asked SEC staff to work closely with the Crypto Task Force to consider appropriate alternatives, including withdrawal,” Uyeda said.
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