The United States Securities and Exchange Commission (SEC) is set to significantly change its cryptocurrency policy as President-elect Donald Trump appoints new leadership at the agency.
On January 15, Reuters cited three sources familiar with the matter, reporting that senior Republican officials at the SEC could begin a complete overhaul of crypto regulations once Trump takes office next week.
Two sources said SEC Commissioners Hester Peirce and Mark Uyeda are considering developing guidelines or regulations to clarify criteria for treating cryptocurrencies as securities. They are also expected to examine some ongoing enforcement actions against the crypto industry.
New leadership to change political direction
Trump’s nominee for SEC chairman, crypto-supporting former Commissioner Paul Atkins, is expected to end the agency’s aggressive stance toward the crypto sector. However, his confirmation by the Senate remains uncertain.
Outgoing SEC Chairman Gary Gensler, known for his tough regulatory approach, will resign on January 20. His tenure was marked by frequent clashes with the crypto industry.
Peirce and Uyeda, who have publicly criticized Gensler’s hardline stance and expressed support for pro-crypto policies, are expected to form a temporary majority in the SEC starting next week.
According to former SEC officials, Atkins has a long-standing relationship with Peirce and Uyeda, dating back to his tenure at the SEC from 2002 to 2008. This close connection could facilitate rapid policy changes.
Reviews of potential lawsuits and policy adjustments
The SEC has launched at least 83 enforcement actions against crypto-related entities, including major companies like Coinbase and Kraken. Two sources revealed that under the new administration, the SEC could review ongoing crypto prosecutions, potentially dropping non-fraud cases.
Additionally, the SEC could repeal “accounting guidelines” that imposed excessive costs on publicly traded companies holding cryptocurrencies on behalf of third parties.
Peirce and Uyeda are reportedly in the early stages of drafting regulatory changes and plan to seek input from industry and the public.
As the crypto industry hungers for regulatory clarity, the SEC’s new leadership could mark a turning point, balancing innovation and oversight while reconsidering the previous administration’s aggressive policies.
