Kenne Michael 
Capital Markets Regulatory Commission, in a recent update, has published a research report highlighting how the Securities and Exchange Commission (SEC) policies are effectively obstructing crypto exchanges from registering with the SEC. The report reveals two primary reasons contributing to this problem.
First, the SEC’s rules and guidance restrict the registration of digital assets as securities, rendering them ineligible for trading on recognized stock exchanges. Consequently, almost no encrypted assets are available for listing and trading on crypto asset trading platforms registered as stock exchanges.
Second, even if crypto assets were to be registered as securities, the current SEC regulations and guidance would make it difficult for crypto asset trading platforms to satisfy the requirements applicable to stock exchanges. This hinders their ability to register and operate within the SEC’s guidelines.
Eleanor Terrett, a reporter for Fox Business, shared the report on Twitter, highlighting its congruence with recent Promethium-related developments. During a hearing, Rodrigo, the legal director of Promethium, stated that their Alternative Trading System (ATS) could only trade tokens if it were SEC-registered. This statement emphasizes the regulatory challenges encountered by initiatives like Promethium.
In response to this issue, Matt Walsh compared Promethium’s ATS to a bicycle without wheels to illustrate how SEC regulations restrict token trading without proper registration.
The Capital Markets Regulatory Commission’s research report provides valuable insights into the regulatory challenges encountered by cryptocurrency exchanges and digital asset projects. These findings cast light on the need for additional discussions and potential regulatory reforms that can foster innovation while protecting cryptocurrency investors in the rapidly evolving cryptocurrency landscape.
