The U.S. Securities and Exchange Commission (SEC), under Acting Chair Mark Uyeda, has announced plans to abandon a 2022 proposal that would have required cryptocurrency firms to register as alternative trading systems (ATS). This proposal, introduced during former SEC Chair Gary Gensler's tenure, aimed to expand the definition of 'exchange' to include crypto platforms, decentralized finance (DeFi) projects, and entities subject to mandatory disclosures. Uyeda criticized the proposal, stating that it improperly linked Treasury market regulations with attempts to regulate the crypto market. He directed SEC staff to explore withdrawing the proposal, which was intended to address Treasury market reforms but had expanded to crypto-related platforms under Gensler's leadership. This decision is part of a broader shift in the SEC's approach to cryptocurrency regulation. The agency has scaled back enforcement actions against crypto firms, including halting lawsuits and investigations involving major players such as Binance, Coinbase, and Kraken. Additionally, the SEC launched a crypto task force in January to develop clearer regulatory frameworks.