U.S. SEC Acting Chair: Considering revising the definition of "exchange," which may exclude protocols providing crypto services

ChainCatcher news, according to Ibtimes, U.S. Securities and Exchange Commission (SEC) acting chairman Mark Uyeda stated that the SEC is considering a proposal to amend the definition of "exchange," which may exclude entities or companies that support cryptocurrency trading.

Uyeda pointed out at the International Banking Association's annual Washington conference that the rules proposed under former chairman Gary Gensler in 2022 included "communication protocols" in the definition of an exchange but did not clearly define the term. He believes that linking the Treasury's market regulation with attempts to crack down on the crypto market is a "mistake."

Uyeda has requested SEC staff to provide an option to "abandon part of the proposal." If the "communication protocols" part is ultimately removed, agreements providing crypto services will be excluded from the definition of an exchange.