Mark Uyeda States That Policymakers and Regulators Continue to Struggle With Essential Questions Regarding Crypto
Mark T Uyeda, the Acting Chairman of the US Securities and Trading network Commission (SEC), has dismissed the enforcement-first strategy for digital currency regulation.
“The method of utilizing notice-and-comment rulemaking or articulating the Commission’s reasoning through releases—instead of resorting to enforcement actions—should have been contemplated for categorizing crypto assets under federal securities laws,” stated Uyeda at the crypto roundtable on 21 March 2025.
Uyeda emphasized that seventeen years have passed since Satoshi Nakamoto published the BTC whitepaper. Yet, market players, legal experts, academics, legislators, and regulators continue to contend with essential queries regarding the classification of these innovative crypto assets under federal securities laws.
“This contention is particularly evident concerning the application of the investment contract test instituted by the Supreme Court in its 1946 decision in SEC v. W.J. Howey Co. (referred to as the “Howey test”) to crypto assets,” remarked Uyeda.
He highlighted the inconsistency in the application of the Howey test.
Key Highlights from the SEC’s Initial Crypto Roundtable:
— CryptoPotato Official (@Crypto_Potato) March 22, 2025
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Hester Peirce Facilitated Crypto Roundtable
“When judicial rulings have previously created ambiguity for market actors, the Commission and its staff have intervened to offer guidance,” Uyeda mentioned.
Uyeda’s remarks represent a notable change from the SEC’s earlier position under Gary Gensler.
Moreover, the roundtable, hosted by the Crypto Task Force, tackled long-standing regulatory voids.
SEC Commissioner Hester Peirce, presiding over the roundtable, advocated for a flexible regulatory framework, while the Spring Sprint Toward Crypto Clarity series concentrated on differentiating securities from non-securities.
“Spring symbolizes fresh starts, and we have a fresh start here, a renewal of the commission’s approach to crypto crypto law,” Peirce stated.
Discover: SEC Crypto Roundtable Revealed: The Groundbreaking Rules You Need to Know
Uyeda Suggests SEC May Abandon Biden-Era Cryptocurrency Custody Proposal
The SEC is contemplating discarding a contentious proposal from the Biden administration that would significantly alter how financial institutions manage crypto assets for their clients.
In February 2023, Gensler proposed extending the existing custody regulations to include crypto assets explicitly. This proposal would have mandated that qualified custodians—usually banks, broker-dealers, and certain trust companies—safeguard crypto assets on behalf of investment advisers.
Uyeda, speaking at a securities conference in Florida, suggested that the commission is now exploring the complete abandonment of the proposal. As reported by a Reuters article dated 17 March 2025, Uyeda expressed that the SEC “needs to emphasize efficient and cost-effective regulations that acknowledge the bounds of our statutory authority,”
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Trump’s Nominee for SEC Chair, Paul Atkins, Set to Appear Before Panel on 27 March 2025
On 27 March 2025, SEC Chair nominee Paul Atkins, who is Trump’s preferred candidate for the role, will appear before the Senate Banking Committee to provide testimony. Atkins, a former SEC commissioner, will proceed if the Senate votes in his favor.
Importantly, Atkins served as an SEC commissioner from 2002 to 2008, and his experience aligns closely with the crypto asset sector.
If appointed, Atkins’ confirmation could signify a major transformation in the SEC’s regulatory approach towards crypto asset.
Key Insights
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Mark T Uyeda has dismissed the enforcement-first strategy in crypto asset crypto law.
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He stated, “The method of utilizing notice-and-comment rulemaking or articulating the Commission’s reasoning through releases—instead of resorting to enforcement actions—should have been contemplated for categorizing crypto assets under federal securities laws.”
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On 27 March 2025, SEC Chair nominee Paul Atkins, Trump’s preferred candidate for the role, will testify before the Senate Banking Committee.
The article Mark Uyeda Indicates Policymakers, Regulators Are Still Addressing Crucial Questions Regarding Crypto first appeared on 99Bitcoins.
