A fast-tracked temporary crypto regulatory framework could bolster innovation within the US crypto industry

This might be the short-term answer as the SEC works toward a “long-term solution,” at the roundtable with SEC members and crypto industry executives

Acting US Securities and Exchange Commission (SEC) chair Mark Uyeda has said that a fast-tracked temporary crypto regulatory framework could be rolled out to foster innovation within the US crypto industry while permanent regulations are still in the works.

Speaking at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” Uyeda said that the time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term.

“Perhaps this provides a good short-term answer as we continue working toward a long-term solution,” Uyeda said.

He added that this might be the short-term answer as the SEC works toward a “long-term solution,” at the roundtable with SEC members and crypto industry executives, including Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar.

Highlighting state-by-state regulation of crypto trading as a concern, Uyeda said that it would create a “patchwork of state licensing regimes.”

A favorable federal regulatory framework would lessen the administrative burden for market participants wishing to offer tokenized securities and non-security crypto assets, allowing them to operate under a single SEC license instead of needing to navigate “fifty different state licenses.” He encouraged crypto market participants to share feedback on areas where “exemptive relief” could be appropriate.

Uyeda also touched upon the benefits of blockchain technology in financial markets during the roundtable discussion.

“Blockchain technology offers the potential to execute and clear securities transactions in ways that may be more efficient and reliable than current processes,” he said.

“Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity.”

Uyeda will continue serving as acting SEC chair until US President Donald Trump’s nominee, Paul Atkins, is officially sworn in.

On April 10, the US Senate confirmedAtkins as chair of the SEC in a 52-44 vote largely along party lines.

Uyeda has served as acting SEC chair since January 20, succeeding former chair and crypto skeptic Gary Gensler. He’s been widely seen within the industry as a pro-crypto advocate.

In March, Uyeda said that the SEC could change or scrap a rule proposed under the Biden administration that would tighten crypto custody standards for investment advisers.