Acting SEC Chairman Suggests Short-Term ‘Exemptive’ Solution for Crypto Assets Could Protect Innovation

The acting chairman of the U.S. Securities and Exchange Commission (SEC) thinks a short-term “exemptive” solution could help boost crypto innovation in the country.

In a speech at the SEC Crypto Task Force’s second roundtable event, Mark T. Uyeda argues that blockchain technology could potentially increase the efficiency of securities transactions.

“For example, blockchains can be used to manage and mobilize collateral in tokenized form to increase capital efficiency and liquidity. Additionally, decentralized finance software protocols allow users to transact on a 24/7 basis via smart contracts.”

The acting SEC chairman also says federal crypto regulation could be more efficient than “a patchwork of state licensing regimes.”

“While the Commission works to develop a long-term solution to address these issues, 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. I encourage market participants that are developing new ways to trade securities using blockchain technology to provide input on where exemptive relief may be appropriate.”

Exemptive relief allows financial firms to offer products to investors that might typically be banned by SEC legislation but have been exempted by the regulator, according to the asset manager Dimensional.

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