In February, the Ministry of Government Effectiveness (DOGE) began to request the contribution of the public relating to the American Securities and Exchange (SEC) commission – a decision suggesting a reform to the agency is imminent.
Since then, the SEC, in accordance with President Trump, has adopted a much less contradictory position towards the cryptocurrency industry, as evidenced by the appointment of friendly cryptos and the abandonment of numerous prosecutions and surveys on cryptographic societies. But DOGE has the potential to implement new changes, and the interest in the SEC signals increasing pressure to regulators to reassess their approach to digital assets.
In response to the public’s request for contribution, Paul Grewal, Coinbase Legal Director – one of the companies no longer faced a legal legal action – proposed a policy forcing the dry to reimburse legal costs for companies that successfully challenge the implementing efforts. The motivation of his suggestion is obvious, but the impact of Doge on the crypto will probably be a little wider.
As Joel Khalili summed up in CableThe recent PRO retreat of prosecution represents “an early signal of the agency’s intention to work in ARM in ARM with the industry to find a set of rules to govern transactions and cryptographic products.”
In the current state of things, the lack of proactive dry directives makes it difficult for companies to plan long -term compliance strategies, and their application measures often come after years of operation, leaving companies and their investors exposed to unforeseen legal risks. In the future, it will probably change.
Based on the application instead of proactive guidelines has forced companies like Coinbase, Ripple and Celsius to spend millions of disputes to clarify their regulatory position. But in one case against Debt Box, the SEC admitted to having inaccuracies in its declarations, which led a court to order the dry to cover the legal expenses of the company – an overview of the suggestion of Coinbase. The decision questioned the agency’s credibility and highlighted the concerns about its application practices.
In the future, expect to see the regulatory organizations – including the SEC – under increased pressure to align with the approach of the American Treasury, which prioritizes clear compliance routes on the reactive application. The guidelines on the digital assets of the Treasury are much more structured and deal with key areas such as tax reports, compliance and LMA measures. The standardized definitions of what constitutes security in cryptographic space are essential to help companies structure their products appropriately from the start.
