SEC Chairman Mark Uyeda Considers Withdrawing DeFi Exchange Regulation Proposal

# SEC Chairman Considers Revisiting Proposal to Regulate DeFi Exchanges On October 10, U.S. Securities and Exchange Commission (SEC) Chairman Mark Uyeda announced plans to reconsider a proposed rule that would include decentralized finance (DeFi) exchanges under regulatory oversight. This proposal, known as Regulation ATS, aims to define communication protocols used in the cryptocurrency market as exchanges. Uyeda has directed SEC staff to explore the option of removing cryptocurrency-related elements from the proposal. This move reflects industry concerns and criticism over potentially excessive regulatory burdens. Uyeda indicated that the rule could force DeFi platforms to register as regulated exchanges. However, the cryptocurrency industry has strongly opposed these regulations, citing significant compliance obligations. Acknowledging these critiques, Uyeda emphasized the need for the SEC to rethink its approach. Originally designed to regulate alternative trading systems, Regulation ATS was amended during the tenure of former SEC Chairman Gary Gensler to potentially extend its scope to DeFi platforms. This amendment could have subjected DeFi exchanges to regulatory oversight similar to traditional financial markets.