SEC Evaluates Easing Regulations on Decentralized Exchanges... Favorable Change for Cryptocurrency Market

# SEC Revisits Expanded Exchange Definition Under Acting Chair Uyeda New York – Reporting from Park Jae-hyung: Acting Chairman of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, has directed a review of the rule that potentially expanded the definition of an "exchange" to include decentralized finance (DeFi) projects. This move signals a positive shift in the SEC's cryptocurrency policy since the Trump administration. According to The Block on October 10 (local time), Uyeda made the announcement at the Institute of International Bankers' 2025 Annual Washington Conference, stating, “Efforts to overly expand the definition of an exchange have been misguided.” The previous SEC’s amendment to Regulation ATS included a provision to consider cryptocurrency-related "communication protocols" as exchanges. This change would have brought decentralized exchanges (DEX) and other DeFi projects under the SEC's regulatory purview. This action indicates a significant shift in SEC’s policy trajectory since the start of the Trump administration. Former SEC Chairman Gary Gensler maintained a stringent regulatory stance, considering most cryptocurrencies except Bitcoin as securities. However, following the commencement of the Trump administration and Gensler’s departure, the SEC has swiftly eased several cryptocurrency policies. Uyeda's directive to review the rules suggests a potential reduction in regulatory burdens for DEXs and DeFi projects. If the previous rules were kept in place, DeFi projects would have been required to submit regular reports to the SEC and fulfill disclosure obligations, which critics argued could undermine the anonymity and decentralization that DeFi relies on. Uyeda’s announcement signals a likely revision in the SEC’s existing regulatory approach to the cryptocurrency market, which could positively impact the growth of the DeFi sector.