With President-elect Donald Trump’s incoming administration, top Republican officials at the U.S. Securities and Exchange Commission (SEC) are gearing up to overhaul the agency’s cryptocurrency policies, potentially as soon as next week. Key SEC figures, including Commissioners Hester Peirce and Mark Uyeda, are expected to lead the charge on clarifying when a cryptocurrency qualifies as a security and to review pending crypto enforcement cases in the courts.
Trump’s pick for SEC Chair, Paul Atkins, is anticipated to bring a crypto-friendly approach, signaling an end to the aggressive crackdown on the industry initiated by President Biden’s SEC Chair Gary Gensler. Gensler, known for his tough stance on crypto regulation, will step down when Trump takes office.
Peirce and Uyeda, both of whom have been critical of Gensler’s policies, will have a majority among the agency’s politically-appointed commissioners starting next week. They are expected to begin the process of revising crypto regulations, potentially starting with a call for industry and public feedback on the SEC’s stance on cryptocurrency as securities.
The SEC has previously brought at least 83 crypto-related enforcement actions, focusing on fraud and market manipulation, with many cases centered on whether crypto tokens behave like securities. However, many in the industry argue that cryptocurrencies are more like commodities and that clear regulations are needed.
While the new SEC leadership is likely to pursue a more crypto-friendly regulatory framework, it is unclear when new policies will be finalized, and addressing complex enforcement actions could take months. Despite these challenges, the industry is hopeful that the Trump administration will create a more favorable environment for cryptocurrencies.