Key Takeaways
Republican SEC commissioners are planning to review enforcement cases related to cryptocurrencies and provide a clear definition of securities.
The incoming SEC Chair, Paul Atkins, is expected to reverse the regulatory crackdown led by Gary Gensler and prioritize fraud accountability.
As President-elect Donald Trump assumes office, the SEC’s Republican commissioners are preparing to revamp the agency’s crypto policies, according to a Reuters report.
Commissioners Hester Peirce and Mark Uyeda are set to initiate reforms as early as next week, with a focus on clarifying the classification of crypto assets as securities and reviewing enforcement cases.
Sources familiar with the matter suggest that the agency may pause or withdraw some litigation that is not related to fraud.
This policy shift coincides with Paul Atkins, Trump’s nominee for SEC Chair, who is expected to take a different approach than outgoing Chair Gary Gensler.
Atkins, a former SEC commissioner, is anticipated to implement more crypto-friendly policies after Senate confirmation.
Peirce and Uyeda, both former aides to Atkins, plan to begin the process of creating new rules by seeking input from the public and industry regarding the classification of crypto tokens.
During Gensler’s tenure, the SEC initiated 83 enforcement actions related to cryptocurrencies, targeting companies such as Coinbase and Kraken.
The new leadership is expected to rescind accounting guidance that has restricted public companies from holding cryptocurrencies on behalf of clients. Trump has pledged to be a “crypto president” and intends to issue executive orders to reassess crypto regulations.
Legal experts caution against potential challenges. Philip Moustakis points out that dismissing enforcement actions or revising settled cases may face resistance in court.
Robert Cohen, a former SEC enforcement division official, stated, “I think the industry wants to see fraudsters or wrongdoers held accountable.”
As the latest CPI report showed a decline in inflation, Bitcoin approached $100,000, prompting market reactions.