SEC proposes federal licensing rules for major crypto exchanges

The U.S. Securities and Exchange Commission has put forward a draft framework that would require major cryptocurrency trading platforms to obtain federal licenses. The proposal is designed to bring large digital-asset exchanges under a regulatory structure more closely aligned with that of traditional financial institutions.

According to the Reuters report, the plan would expand the agency's oversight of platforms that handle substantial trading volume, potentially changing how large crypto firms operate in the United States. The draft is not yet final and would still need to move through the regulatory process before taking effect.

Supporters of tighter oversight argue that clearer licensing rules could improve market integrity and consumer protections in a sector long criticized for uneven safeguards and opaque practices. Critics, however, are likely to warn that stricter federal requirements could raise compliance costs and slow innovation.

The proposal adds to a broader push by U.S. regulators to define how digital-asset markets should be supervised, as policymakers continue to balance investor protection with the growth of the crypto industry.