Crypto regulations under review as SEC meets with industry leaders

The US financial regulator continues discussions with industry leaders over cryptocurrency regulations, with indications that enforcement actions against some companies could be dropped. The Securities and Exchange Commission (SEC) has already closed an investigation into Robinhood Crypto and is reportedly set to abandon its case against Coinbase.

According to recent filings, officials from the SEC’s cryptocurrency task force have met with representatives from multiple companies, including the Crypto Council for Innovation, infrastructure provider Zero Hash, and investment firm Paradigm Operations. Strategy executive chair Michael Saylor was also involved in discussions. Those present urged the regulator to reconsider its previous stance that many digital assets fall under its remit as financial instruments.

The task force, led by Commissioner Hester Peirce, has held similar meetings with the Blockchain Association, Jito Labs, and Multicoin Capital. While it remains unclear whether the SEC will shift its regulatory approach under acting chair Mark Uyeda, the commission has suggested that it may adopt a more flexible stance. Peirce has called for public input on a potential framework that acknowledges some cryptocurrencies may not qualify as financial instruments.

This apparent change in direction comes as the SEC remains without a permanent chair. The US Senate has yet to schedule a hearing for former commissioner Paul Atkins, who is expected to take up the role. Meanwhile, the regulator has withdrawn an appeal blocking a controversial broker-dealer rule for cryptocurrency companies, hinting at a broader move towards easing restrictions under the new administration.

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