The US Securities and Exchange Commission’s (SEC) Crypto Task Force convened its second roundtable in Washington, D.C., spotlighting the challenges and opportunities surrounding crypto trading in the United States.
Acting Chairman Mark T. Uyeda, addressing an audience of regulators, industry representatives, and legal experts, drew parallels between the current stage of crypto markets and the origins of the American securities industry over two centuries ago.
“Over 200 years ago, a group of stockbrokers gathered under a buttonwood tree to establish basic rules for the trading of securities on an organized market in New York,” Uyeda said, referencing the historic roots of the New York Stock Exchange.
He likened that pivotal moment in financial history to today’s regulatory crossroads for crypto trading platforms, which have largely evolved outside the federal securities regulatory framework.
Current state-level oversight has prompted concerns about a patchwork of varying licensing regimes. Uyeda noted that some crypto market participants might prefer a more unified approach, suggesting that a single federal license from the SEC could be more efficient and innovative than maintaining up to 50 separate state-based licenses.
However, he acknowledged that existing federal securities laws could pose hurdles, particularly regarding national securities exchanges’ inability to list unregistered tokenized securities.
“One issue is that national securities exchanges can only list registered securities, yet most tokenized securities in the market today are unregistered,” Uyeda said. He also raised questions about how rules such as the order protection rule (Rule 611) could be applied in an environment where assets trade in both on-chain and off-chain markets.”
Uyeda further emphasized that incumbent crypto trading platforms are often vertically integrated—encompassing custody, execution, and clearing under one roof—a structure not typically found in traditional securities exchanges.
Still, he expressed optimism about blockchain technology’s potential to make transaction processes more efficient and transparent. He urged the industry to share input on how time-limited, conditional exemptive relief could foster innovation, allowing blockchain-based solutions to flourish under a suitable regulatory framework.
The roundtable concluded with calls for continued dialogue among regulators, market participants, and the broader public, as the SEC seeks a long-term approach for integrating emerging technologies into the US securities landscape.