(Reuters) – Wall Street’s top regulator is considering changing or scrapping regulations proposed under the prior administration that would require investment advisors keeping custody of cryptocurrencies and other assets to meet stricter standards, the agency’s interim chief said Monday.
Mark Uyeda, acting chair of the U.S. Securities and Exchange Commission, also said the agency was developing possible changes to a recent rule that requires mutual and exchange-traded funds to report portfolio holdings on a monthly rather that quarterly basis.
His address to an investment industry conference in San Diego laid out plans for a sharp divergence from the way President Joe Biden’s administration oversaw Wall Street.
Uyeda said the SEC “needs to prioritize effective and cost-efficient regulations that respect the limits of our statutory authority,” according to a copy of his prepared remarks.
In proposing changes to the custody rule two years ago with Uyeda’s support, former SEC Chair Gary Gensler said they would help ensure that investment advisers did not “use, lose or abuse” their clients’ assets.
Since then, however, comments submitted by the public had criticized its “broad scope,” according to Uyeda.
Meanwhile, the rule requiring more frequent reporting, adopted in August, was among many introduced by Gensler that faced legal challenges from industry.
Gensler had said at the time it would promote greater transparency but Uyeda said public commenters had since said advances in artificial intelligence heightened their concerns about the increased frequency in required reporting.
Former SEC Commissioner Paul Atkins, whom President Donald Trump nominated in December, is due to take over as SEC Chair from Uyeda but Senate confirmation hearings have not yet been scheduled.
The agency is facing White House calls for sharp staff reductions but plans have not yet been made public.
(Reporting by Douglas Gillison; Editing by Chizu Nomiyama)
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