Acting SEC Chair Uyeda Calls for Temporary Relief Framework to Support US Crypto Industry

The U.S. cryptocurrency industry could benefit from immediate, short-term regulatory relief while lawmakers work on a more permanent legal structure, according to Acting Securities and Exchange Commission (SEC) Chair Mark Uyeda. Speaking at the SEC’s April 11 Crypto Task Force roundtable titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” Uyeda outlined a strategy to bridge the gap between innovation and regulation.

“A time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda stated.

The proposed approach, which would temporarily ease regulatory requirements for crypto firms, is aimed at encouraging blockchain development without sacrificing investor protections. Uyeda emphasized that this “band-aid” solution could offer vital breathing room for startups and established players alike while the SEC works on crafting a comprehensive, long-term framework.

Addressing Fragmented Regulation and Burdensome Compliance

One of Uyeda’s primary concerns is the current “patchwork” of state-by-state regulations governing crypto trading. He warned that without cohesive federal oversight, companies are forced to navigate a maze of licensing regimes that stifle innovation and complicate compliance.

“A favorable federal regulatory framework would ease the burden for market participants wishing to offer tokenized securities and non-security crypto assets,” Uyeda said. “Operating under a single SEC license is far more efficient than dealing with fifty different state licenses.”

He urged industry stakeholders to engage with the SEC and provide feedback on where “exemptive relief may be appropriate,” encouraging collaboration in shaping a regulatory environment that supports growth and technological advancement.

Source: US Securities and Exchange Commission

Blockchain’s Role in Market Efficiency

Throughout the roundtable, Uyeda reiterated the SEC’s recognition of blockchain’s transformative potential in financial markets.

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

He also pointed out the potential of tokenization to improve capital efficiency:

“Blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity.”

Participants in the discussion included key industry figures such as Uniswap Labs’ Katherine Minarik, Cumberland DRW’s Chelsea Pizzola, and Coinbase’s Gregory Tusar — all of whom echoed the need for regulatory clarity and flexibility.

Leadership Transition at the SEC

Uyeda continues to serve as acting chair of the SEC following the departure of former chair Gary Gensler, who was known for his skeptical stance on digital assets. Uyeda, viewed by many in the industry as a more crypto-friendly regulator, will hold the position until President Donald Trump’s nominee, Paul Atkins, is formally sworn in.

Atkins was confirmed by the U.S. Senate on April 10 in a 52-44 vote largely split along party lines. His appointment is expected to usher in a more market-friendly approach to crypto oversight.

Earlier this year, Uyeda also signaled his willingness to reconsider several Biden-era proposals, including a controversial rule that would have tightened custody standards for crypto held by investment advisers.

“I have asked the SEC staff to work closely with the crypto task force to consider appropriate alternatives, including its withdrawal,” Uyeda said in March.

Looking Ahead

Uyeda’s comments mark a significant shift in tone from the SEC, signaling a more pragmatic and innovation-friendly approach. While permanent crypto regulations remain in the pipeline, Uyeda’s push for interim relief could offer much-needed clarity and flexibility to a sector that has long struggled with regulatory uncertainty.

As the U.S. government continues to realign its stance on digital assets under the Trump administration, the coming months may prove crucial for the future of crypto innovation in the country.