The American securities regulatory body is currently considering a new proposal to change the definition of “exchange”. The new definition would affect businesses dealing with cryptocurrency trading.
Summary
- Mark Uyeda proposed changes in the previously proposed changes in the “Exchange” definition.
- Proposal aimed to cover digital assets service providers and DeFi protocols
- Ark CEO Wood praised Trump’s pro-crypto presidency.
The United States Securities and Exchange Commission (SEC) is the top American financial regulatory body. Over the last several years this regulatory body attacked the crypto space, using traditional financial rules and laws. In particular, Gary Gensler, former SEC chairman, initiated several lawsuits against the top crypto companies despite the fact the companies were following all the measures to comply with traditional financial rules.
On 10 March 2025, At the International Bankers Association’s Washington conference, the US SEC’s acting chairman, Mark Uyeda, passed his statement against a proposal previously aimed to expand the definition to cover “communication protocols.”
Uyeda said that we, the regulars, should rethink the proposed approach, calling it a “mistake” to conflate the regulation of the Treasury market with the regulation of crypto. The acting chairman suggested the SEC staff consider dismissing the ‘communication protocols’ clause.
The SEC chairman also emphasised the significance of efficient capital markets and highlighted the role of the securities regulatory body in Treasury market oversight and the council’s coordination with other financial regulators.
If the SEC body follows the proposal, then it would allow certain digital assets service providers and DeFi protocols to be beyond the authority of the American securities regulatory body.
It is worth noting that a similar kind of statement was also passed by Coinbase‘s Chief Legal Officer Paul Grewal regarding the previously proposed change in the “Exchange” definition, last year. So here we can say that Uyeda’s statement is in line with Coinbase’s legal officer.
Mark Uyeda & His Procrypto Regulatory Approach
This year, the newly elected US president, Donald Trump, appointed Mark Uyeda as the acting chairman of the SEC body.
However, Trump appointed Paul Atkins as the SEC chairman, but currently, Uyeda is doing his job as chairman in the absence of Atkins.
Some experts believe that Uyeda may assume the role of SEC’s permanent chairman position, and his term as a commissioner expires in 2028.
Over the last one & half months, Uyeda has shown his ProCrypto crypto regulatory approach, and also we can see some big & better outcomes for the crypto companies where the SEC staff decided to close its enforcement actions.
Cathie Wood on Trump’s Pro-Crypto Leadership
As we know, currently, the crypto market is struggling because of the usual crashes in the trade price of the majority of digital assets.
Today, Ark investment firm CEO Cathie Wood indirectly said that the market is currently going through the last leg of a rolling recession.
Furthermore, it added that the Trump Administration and the Powell Fed had many more degrees of freedom coming, which would set up the US economy’s growth to the next level.
Top Bitcoin advocate & investor Wood indirectly praised Trump’s presidency as the best approach to bring a better situation for the volatile money market, including Crypto.
Read also: Tether ($USDT) is now a legally approved Cryptocurrency in Thailand
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