U.S. Securities and Exchange Commission (SEC) and Cryptocurrency Regulation Adjustments
The SEC is considering changing regulations to help companies easily issue crypto securities, according to SEC Commissioner Hester Peirce. On May 8, Peirce said the SEC might allow companies to use blockchain technology to issue, trade, and settle securities without complying with certain registration requirements.
Decentralized exchanges (DEXs) may not need to register as brokers, clearing agencies, or exchanges. Previously, the SEC had sued DEXs like Uniswap for not registering. Peirce argued that companies should not be subject to outdated regulations that are not suitable for blockchain technology.
Under the new exemption rules, companies must still comply with regulations to prevent fraud and market manipulation. They also need to meet disclosure and record-keeping requirements.
SEC's Cryptocurrency Policy Changes
The SEC has made a strong shift in cryptocurrency oversight since President Donald Trump took office. Under former chairman Gary Gensler, the SEC filed over 100 lawsuits against cryptocurrency companies violating securities laws.
However, under chairman Paul Atkins, the SEC now manages a narrower cryptocurrency segment. In February, the SEC guided that Memecoin, if only identified as a speculative asset without intrinsic value, would not be considered an investment contract under U.S. law. In April, they declared that Stablecoin would also not be considered a security if used only for payment.
Ethereum is leading the Tokenization race in the traditional financial sector valued at $16.1 trillion.
