Photo: Inc. Magazine
Important takeaways
- Republican SEC commissioners plan to review crypto enforcement cases and clarify definition of securities.
- Incoming SEC Chairman Paul Atkins is expected to reverse the crackdown led by Gary Gensler, while focusing on fraud liability.
The SEC’s Republican commissioners are preparing to overhaul the agency’s crypto policy when President-elect Donald Trump takes office, according to a Reuters Report.
Commissioners Hester Peirce and Mark Uyeda are set to begin reforms as early as next week, focusing on clarifying classifications of crypto-asset securities and reviewing enforcement cases.
Sources familiar with the matter indicate the agency may pause or withdraw some non-fraud litigation.
The policy shift comes as Paul Atkins, Trump’s nominee for SEC chairman, is expected to reverse the regulatory strategy of outgoing chairman Gary Gensler.
Atkins, a former SEC commissioner, is expected to implement more crypto-friendly policies after Senate confirmation.
Peirce and Uyeda, both former Atkins aides, plan to initiate new regulations by seeking input from the public and industry on cryptotoken classification.
The SEC launched 83 crypto-related enforcement actions during Gensler’s tenure, targeting companies like Coinbase and Kraken.
The new leadership is expected to repeal accounting guidance that has restricted public companies from holding crypto for clients. Trump has promised to be an “encryption president” and plans executive orders to reevaluate the crypto rules.
Legal experts warn of potential challenges. Philip Moustakis notes that dismissing enforcement actions or revising settled cases may face court resistance.
Robert Cohen, a former official in the SEC’s regulatory division, said: “I think the industry wants to see fraudsters or criminals held accountable.”
Bitcoin approached $100,000 as markets reacted to cooling inflation reflected in the latest CPI report.
