Crypto Firms, Wall Street Urge SEC to Revise Proposed Digital Asset Rules

digital asset rules — Major cryptocurrency firms and traditional Wall Street institutions have submitted a final wave of comments urging the U.S. Securities and Exchange Commission (SEC) to revise its proposed rules for digital assets.

The comment period for the SEC’s sweeping proposal, often referred to as Regulation Crypto Assets, closed on October 21, 2026. The regulator’s plan aims to expand the definition of “exchange” and bring more crypto trading platforms and decentralized finance (DeFi) protocols under its oversight.

Industry participants argued the proposed rules are overly broad and could stifle innovation. Many comment letters requested clearer exemptions for certain DeFi activities and urged the SEC to better align its rules with existing frameworks from other federal agencies like the Commodity Futures Trading Commission.

The SEC will now review the submissions before deciding whether to proceed with a final rule, modify its proposal, or withdraw it entirely. The process is expected to extend into 2027, with the potential for legal challenges if the final rules are deemed too restrictive.