Mark Uyeda, acting chairman of the SEC, centered his speech at the Annual Conference of the Institute of International Bankers on U.S. Treasury securities, amid market turbulence and investors seeking refuge in safe-haven assets. He also suggested that the regulator might withdraw the requirement for crypto companies to register as securities brokers.
«At a time when debt service costs are surpassing both national defense and healthcare spending, we cannot afford to rush into changes that might deter foreign investors from participating in U.S. Treasury markets. On the contrary, new regulations must be properly implemented, and any operational issues must be addressed,» Uyeda stated.
Uyeda revealed that he has instructed SEC staff to explore “options to abandon” parts of the proposed regulatory changes that would extend alternative trading system (ATS) regulations to include crypto companies. He recalled that the rule was originally designed in 2020, under former SEC chairman Jay Clayton, to establish clearer guidelines for alternative trading systems. However, the guidance was primarily intended to impact U.S. Treasury market participants.
Uyeda noted that when the rule’s implementation fell under former SEC chairman Gary Gensler, it took a “very different direction”, expanding beyond ATS platforms.
«Instead of focusing on specific issues related to ATSs for government securities, in 2022, a new version of the rule was proposed that would redefine the regulatory definition of a securities broker,» Uyeda remarked.
Following Gensler’s resignation, the SEC has taken a more relaxed approach toward the crypto industry.
«It was a mistake for the Commission to link the regulation of Treasury markets with a heavy-handed attempt to crack down on the cryptocurrency market,» he added.
With all this, in his speech, the acting chairman emphasized that the U.S. Treasury securities market is a “fundamental piece of the global financial system” and pointed out that foreign investors hold approximately one-third of the U.S. government’s marketable debt as of June 2023.
Uyeda noted that the United States uses these capital markets as an issuer of securities “to finance deficit spending,” and that being “the deepest and most liquid market in the world, U.S. Treasury securities serve as an investment, collateral, and safe haven in times of market turmoil.” He also emphasized that capital market regulation remains a priority and that he will continue working with foreign regulators to maintain global cooperation.
Concluding his speech, Uyeda reaffirmed that the SEC will continue engaging with international financial institutions as Treasury markets evolve.
