The US financial regulator is looking to scrap a proposal that would have brought some cryptocurrency firms under stricter regulations.
Acting US Securities and Exchange Commission (SEC) chairman Mark Uyeda said that he has directed staff to explore ways to abandon a 2022 plan that aimed to classify certain crypto firms as alternative trading systems, subjecting them to increased oversight.
Uyeda argued that it was a mistake to tie regulation of Treasury markets to a broader crackdown on crypto.
The move signals a shift in approach under the Trump administration, which has launched a crypto task force and begun pausing legal actions against crypto firms.
Bitcoin fell to three-month lows below $76,000 in recent days, down 16% over the past month after peaking out at above $100,000 in December and January.