The Acting Chairman of the U.S. Securities and Exchange Commission (SEC), MARK T. UYEDA, has proposed a short-term “exemptive” framework to accelerate cryptocurrency innovation within the United States. Speaking at the SEC Crypto Task Force’s second roundtable event, Uyeda emphasized the transformative potential of blockchain technology in enhancing the efficiency of securities transactions.
“Blockchains can be utilized to manage and mobilize collateral in tokenized form, thereby increasing capital efficiency and liquidity. Additionally, decentralized finance (DeFi) software protocols enable users to transact on a 24/7 basis through smart contracts,” stated UYEDA.
He further highlighted the challenges posed by the current regulatory landscape, noting that federal crypto regulation could offer a more streamlined approach compared to the existing “patchwork of state licensing regimes.”
“While the Commission works towards a long-term solution, a time-limited, conditional exemptive relief framework for both registrants and non-registrants could foster greater innovation with blockchain technology in the near term. I encourage market participants exploring new ways to trade securities using blockchain technology to provide input on where such exemptive relief might be appropriate,” added UYEDA.
Exemptive relief, as defined by asset manager Dimensional, allows financial firms to offer products that might otherwise be restricted under SEC regulations, provided the regulator grants an exemption.
This proposal underscores the SEC’s commitment to balancing regulatory oversight with the need to support technological advancements in the rapidly evolving crypto landscape.
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