SEC Under Trump Administration To Revise Crypto Policies: Report

The U.S. SEC appears set for a significant shift in its approach to cryptocurrency regulation, potentially starting as early as next week, as President-elect Donald Trump takes office.

What Happened: Reuters reported that key Republican commissioners, Hester Peirce and Mark Uyeda, are planning to initiate a series of actions that could dramatically alter the regulatory landscape for digital assets.

The underlying reason for this shift is clear: a philosophical change in how the SEC views the industry, moving away from a perceived “crackdown” to what seems to be a potentially more accommodating stance.

Peirce and Uyeda, both known for their pro-crypto views, are reportedly considering steps to establish clearer guidelines on when a digital currency is classified as a security.

This is crucial because the classification determines which regulations apply, something that has been a major point of contention and confusion within the crypto industry.

Furthermore, they are looking at revisiting ongoing enforcement cases, initiated under the current administration, which adds a layer of uncertainty and potential policy changes that could impact multiple companies.

This signals a possible shift in how the SEC intends to engage with digital currency markets.

The anticipated appointment of Paul Atkins, a known crypto advocate, as SEC chair further reinforces the notion of a major regulatory shift.

While his confirmation by the Senate is pending, Atkins’ expected arrival signals a departure from the more stringent regulatory approach of outgoing chair Gary Gensler, whose departure is set to coincide with the inauguration.

The appointment of Atkins, combined with the current commissioners’ planned actions, suggests a deliberate and coordinated effort to revise how the SEC oversees the cryptocurrency space.

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Peirce and Uyeda, who previously served under Atkins at the SEC, are aligned with his views.

They have long criticized Gensler's enforcement-heavy strategy and have discussed alternative, more crypto-friendly policies.

With Gensler’s imminent departure, they’re expected to form a majority on the commission, allowing them to move forward with their agenda as they see fit in the interim.

This highlights the strategic importance of the timing and the commissioners’ willingness to take the reins as soon as possible.

What’s Next: It is important to note that the outgoing administration’s SEC, under Gensler, initiated over 80 enforcement actions, citing concerns about fraud and market manipulation.

Many of these lawsuits revolve around the argument that certain crypto tokens operate as unregistered securities, therefore coming under SEC’s jurisdiction.

The potential shift in how the SEC classifies and oversees these assets could have a major ripple effect throughout the industry.

This matters because the companies that have been targeted by the SEC may find themselves in different legal standing as this new approach is implemented.

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