According to Cointelegraph, the United States Securities and Exchange Commission (SEC) will continue to seek modifications to the definitions of 'exchange' and alternative trading systems, as stated by chairman Gary Gensler at the US Treasury Market Conference on September 26.

Gensler addressed issues impacting the efficiency and resilience of the US Treasury bond market. The proposed changes have faced significant criticism from the digital asset community. One of the SEC's measures to strengthen the Treasury market involved redefining 'dealer' to include more market participants, such as principal-trading firms that utilize algorithmic and high-frequency trading strategies. Despite criticism from pro-crypto politicians regarding the potential impact on digital asset trading, these changes were adopted in February 2022.

Another contentious issue is the definition of 'exchange' and alternative trading systems, which also affects digital assets. A proposal from 2022 aimed to extend registration requirements for platforms acting as market makers for government securities. The proposal's wording suggested that other exchange platforms might also be subject to the new rules, raising constitutional concerns. When the proposal was revisited a year later, a section was added to specifically address decentralized finance (DeFi). Gensler noted that this update would close a regulatory gap among platforms, though the changes have not yet been finalized.

Prometheum and tZero are notable examples of registered alternative trading systems. They are the first and only firms to receive special purpose broker-dealer status for digital asset securities, enabling them to provide custody of digital asset securities for retail and institutional clients. While Gensler did not mention cryptocurrency or DeFi in his presentation, he later appeared on CNBC to discuss crypto regulation, asserting that the crypto industry is sufficiently regulated by existing laws.