On March 17, the top regulator of Wall Street disclosed potential changes to or elimination of regulations introduced by the previous administration regarding the custody of cryptocurrencies and other assets to comply with more rigid standards, as stated by the interim chief of the agency.
Mark Uyeda, the acting chair of the U.S. Securities and Exchange Commission, additionally mentioned that the agency is exploring modifications to a rule obliging mutual and exchange-traded funds to report their portfolio holdings monthly rather than quarterly.
His presentation at an investment industry conference in San Diego outlined a significant departure from the regulatory approach of former President Joe Biden's administration on Wall Street.
Uyeda emphasized the need for the SEC to focus on efficient regulations within the boundaries of their legal authority, stating, "needs to prioritize effective and cost-efficient regulations that respect the limits of our statutory authority," as per his prepared remarks.
While the former SEC Chair Gary Gensler had supported the proposed changes to the custody rule two years ago to safeguard clients' assets from potential misuse by investment advisers, Uyeda highlighted that public feedback had raised concerns about the rule's broad scope.
Furthermore, the rule mandating more frequent reporting, put into effect in August, faced legal opposition from the industry among other regulations introduced by Gensler. Despite Gensler's intention to enhance transparency with this rule, Uyeda pointed out that public commentary highlighted worries regarding the increased reporting frequency in light of advancements in artificial intelligence. Uyeda also hinted at the possibility of extending the deadline for compliance.
Former SEC Commissioner Paul Atkins, nominated by President Donald Trump, is expected to succeed Uyeda as SEC Chair, pending Senate confirmation hearings which have not been scheduled yet.
Although the White House is urging significant staff reductions at the agency, specific plans have not been disclosed publicly.