- The possible withdrawal of the expansion of the regulation ATS by the SEC could reduce the pressure on crypto bonds and defi platforms to comply with the regulations and thus promote innovations.
- A cheaper regulatory environment could strengthen the trust of the investors and have a positive effect on the Bitcoin price and the general market stability.
The US stock exchange supervision SEC surveys its approach to regulating crypto bonds under the regulation ATS (Alternative Trading Systems).
Reuters reports today that the incumbent SEC chairwoman Mark Uyeda has instructed the agency’s staff to check and possibly give up aspects of a proposed rule that would have expanded the definition of a stock exchange in order to conclude decentralized crypto projects.
He said he also asked the employees of the SEC to renew the talks with the Ministry of Finance, the Federal Reserve and the market participants in order to check the original plans for regulatory changes to the alternative trading systems for state securities.
In addition, the ATS regulation was originally developed to supervise non-accountable trading platforms and to ensure transparency and investor protection.
In April 2024, under the former SEC chairman Gary Gensler, the Commission proposed to extend this regulation on communication protocols, a term that was not clearly defined, but could have included various decentralized financial platforms (Defi).
This type of expansion aimed to put more crypto platforms under the supervision of the SEC and to ask them to register and to meet strict disclosure requirements.
Criticism and re -evaluation
The proposed expansion was heavily criticized by the crypto industry. It was feared that the innovation could stall the innovation and that defi projects could impose excessive regulatory stress.
Critics argued that the SEC goes too far with its approach and mixed traditional financial market regulations with the unique dynamics of the crypto market. In response to this feedback, the incumbent chairwoman Uyeda admitted that it was a mistake to combine the regulation of the financial market with a tough procedure against cryptocurrencies.
This reassessment marks a broader shift in the attitude of the SEC to regulate cryptocurrencies under the current administration. The Commission has moved away from the aggressive enforcement measures that were characteristic of the previous government.
Effects of Bitcoin stock exchanges and market development
The possible abolition of the extended definition of stock exchange within the framework of the ATS regulation could have a significant impact on crypto bonds and defi platforms. It could dispel the concerns about the mandatory SEC registration and compliance load and promote a more innovation-friendly environment.
An oncoming regulatory framework could strengthen the trust of investors, which could lead to increased acceptance and stabilization or an increase in the Bitcoin course.
According to current data, Bitcoin is traded at a price of around $ 81,503.20, with a 24-hour trading volume of 59,249,949,414. This price reflects a decrease of 1.54% in the last 24 hours and 2.96% last week.
