In a recent discussion hosted by the U.S. Securities and Exchange Commission (SEC), interim Chairman Mark Uyeda revealed plans for a potential short-term regulatory framework. This initiative aims to facilitate cryptocurrency firms’ ability to innovate amid ongoing discussions on more permanent regulations.

Uyeda remarked, “We should consider whether there may be a more efficient method of regulation under an accommodating federal regulatory framework,” highlighting a need for a flexible and time-restricted exemption that encourages blockchain innovation.

As the SEC awaits proposed legislation from Congress regarding a structured approach to cryptocurrency, industry stakeholders have expressed a desire for clarity on the operational rules governing digital assets. The timeline for such regulations remains uncertain with Congress’s input expected soon, but the development process may stretch for months.

During the second crypto roundtable, Uyeda, alongside likely future chairman Paul Atkins, addressed the possibility of overseeing a dual approach where platforms manage both regulated and non-regulated activities. Commissioner Hester Peirce shared insights from a crypto advocacy perspective, asking, “What can and should we do in the short term, and what should Congress consider in the longer term to ensure that the regulatory gaps are filled?”

Commissioner Caroline Crenshaw warned that mishaps in the crypto sphere have exposed significant mismatches between investor expectations and reality, echoing the urgency for effective oversight.

For more in-depth insights, read the full article on CoinDesk.