A sweeping overhaul of US cryptocurrency regulation looms as Republican SEC commissioners prepare to take control of the agency’s agenda next week, marking a dramatic departure from the enforcement-heavy approach of the Biden era.
The incoming leadership duo of Commissioners Hester Peirce and Mark Uyeda signals a potential lifeline for the crypto industry, which has faced an unprecedented crackdown under departing SEC Chair Gary Gensler, including 83 enforcement actions against major players like Coinbase and Kraken.
Both commissioners, who previously served under Trump’s SEC chair nominee Paul Atkins, are poised to freeze non-fraud enforcement cases and launch initiatives to clarify when digital assets fall under SEC jurisdiction, according to three people familiar with their plans who requested anonymity.
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The regulatory reset comes amid surging crypto markets, with Bitcoin reaching $100,000 in December on expectations of a more industry-friendly regime. The SEC is also likely to ease accounting restrictions that have deterred public companies from offering crypto custody services.
Yet the transition faces hurdles. “The wholesale dismissal of enforcement actions would set a dangerous precedent,” warned Philip Moustakis, a former SEC attorney now at Seward & Kissel. Other legal experts suggest the agency might instead pursue expanded settlement talks with crypto firms, discussions that stalled under Gensler.
The anticipated changes, supported by Trump’s planned executive orders on cryptocurrency, align with his campaign promises to embrace digital assets. However, Robert Cohen, a former SEC enforcement official, expects continued vigilance against fraud: “The industry itself wants to see bad actors held accountable.”
The new approach could take months to implement, even as Gensler exits on January 20 with Trump’s inauguration.
Information for this story was found via Reuters, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
