SEC Considers Temporary Crypto Oversight to Encourage Innovation

The U.S. Securities and Exchange Commission (SEC) may adopt a short-term regulatory framework for digital assets, according to interim Chairman Mark Uyeda. Speaking during a crypto industry roundtable held at the SEC's Washington headquarters, Uyeda emphasized the need for flexible oversight as the agency works toward long-term crypto regulation.

“We should consider whether there may be a more efficient method of regulation under an accommodating federal regulatory framework,” Uyeda stated in a recorded message. He proposed a “time-limited, conditional exempt relief framework” for both registered and non-registered firms to foster blockchain innovation in the short term.

With Congress still developing a comprehensive crypto market-structure bill—expected later this year—the SEC remains limited in its ability to enforce tailored regulations. Uyeda’s comments reflect the growing urgency for regulatory clarity as crypto firms seek to operate across both securities and non-securities markets.

Republican Commissioner Hester Peirce echoed similar concerns, questioning what actions the SEC can take now versus what Congress must address to close regulatory gaps. Peirce, who leads the SEC’s Crypto Task Force, noted that firms increasingly aim to merge traditional securities operations with broader crypto trading under one umbrella.

Democratic Commissioner Caroline Crenshaw took a cautious stance, highlighting the risks posed by crypto platforms offering multiple financial services—such as custody, clearing, and trading—without separation. She warned that such vertical integration introduces conflicts of interest and investor risk not typically found in traditional finance, where these services are segmented and regulated independently.

The roundtable marked the second in a series aimed at redefining the SEC’s digital asset strategy. Incoming Chairman Paul Atkins is set to assume leadership, but Uyeda and Peirce will remain influential voices shaping crypto policy in the evolving U.S. regulatory landscape.