SEC Signals Readiness to Rethink Crypto Trading Oversight

Mark Uyeda, Acting Chair of the US Securities and Exchange Commission (SEC), has encouraged crypto industry participants to offer input on a proposed framework. The initiative is designed to ease regulatory pressure on digital asset trading.

Speaking at the SEC’s April 11 Crypto Task Force roundtable, Uyeda highlighted the growing disconnect between current regulations and the realities of blockchain innovation.

SEC Considers Federal Licensing Model to Streamline Crypto Compliance

Uyeda likened the evolution of crypto markets to the early days of US securities trading, which began under a buttonwood tree in New York City.

He argued that early brokers created rules that suited the needs of their time. In the same way, modern regulators must now consider frameworks that align with the distinct structure of crypto platforms.

Unlike traditional exchanges, crypto trading systems often combine custody, execution, and clearing into one platform. Blockchain technology makes this integration possible.

Uyeda pointed out that this setup can improve transparency, efficiency, and trading speed. He also highlighted benefits like 24/7 trading through smart contracts and streamlined collateral management via tokenization.

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

Still, Uyeda acknowledged that the architects of US securities laws never anticipated blockchain technology or decentralized systems. As a result, compliance challenges have emerged as many tokenized securities remain unregistered and ineligible for national exchanges.

Besides that, existing rules, such as the order protection rule, are also difficult to apply in hybrid trading environments where assets move between on-chain and off-chain systems.

Uyeda also criticized the current patchwork of state-by-state licensing requirements, which create barriers for crypto firms aiming to operate nationwide.

To address these gaps, Uyeda proposed a conditional relief framework that could support experimentation while maintaining investor protections. He also suggested that a unified federal licensing model under the SEC could simplify compliance and enhance market consistency.

“Under an accommodating federal regulatory framework, some market participants would likely prefer to offer trading in both tokenized securities and non-security crypto assets under a single SEC license rather than offer trading solely in non-security crypto assets under fifty different state licenses,” Uyeda said.

Nonetheless, he invited industry experts to recommend specific areas where such relief would unlock practical use cases without undermining market integrity.

Uyeda’s remarks signal the SEC’s growing awareness that digital asset regulation must evolve. While long-term reform may take time, the proposed relief framework could create room for innovation without compromising market safeguards