The SEC may introduce a temporary regulatory sandbox for crypto exchanges aimed at enhancing innovation in blockchain trading. Acting Chair Mark Uyeda encourages input on exemptive relief, while Commissioner Hester Peirce supports trial periods for testing new regulations. Concerns are raised over the need for federal oversight to protect retail investors against potentially inadequate state regulations. Upcoming roundtables will further explore custody issues and asset tokenization.
The SEC, led by acting Chair Mark Uyeda, has proposed a regulatory sandbox for cryptocurrency exchanges. This initiative aims to facilitate the trading of tokenised assets while the Commission works on long-term regulations. Uyeda mentioned that a time-limited and conditional exemptive relief framework might foster innovation in blockchain technology within the US.
Uyeda encouraged industry participants to share insights on where the proposed exemptive relief could apply. Commissioner Hester Peirce, supporting the initiative, suggested that trial periods for participating firms could offer practical insights into market viability and inform rulemaking processes for the Commission.
Previously, Peirce had suggested similar measures in 2024, which were dismissed by then-Chair Gary Gensler. In contrast, the Trump administration has shown support for cryptocurrency, recently issuing an Executive Order to establish a strategic Bitcoin reserve and a digital asset stockpile.
Uyeda cautioned against a fragmented approach to state-level crypto asset trading regulations, advocating instead for a unified federal licensing system. Republican Commissioner Caroline Crenshaw highlighted the need for federal oversight to ensure retail investors receive adequate protections when engaging with crypto companies, questioning whether current safeguards are sufficient.
The SEC’s Crypto Task Force is scheduled to hold its next public roundtable on crypto custody issues on April 25th, followed by discussions on asset tokenization on May 12th.
