New SEC leadership set to ease cryptocurrency regulations

Republican officials at the US Securities and Exchange Commission (SEC) are preparing to overhaul the agency’s cryptocurrency policies following the inauguration of President-elect Donald Trump. Commissioners Hester Peirce and Mark Uyeda, who will soon hold the majority at the SEC, are expected to begin reviewing crypto enforcement cases and initiating rule-making efforts to clarify when digital assets are considered securities. Trump’s pick for SEC chair, Paul Atkins, is widely expected to roll back the tough regulatory approach taken under outgoing chair Gary Gensler.

Gensler’s SEC pursued 83 crypto-related enforcement actions, targeting companies like Coinbase and Kraken. Many of these cases argued that cryptocurrencies function as securities and should comply with SEC regulations. Peirce and Uyeda are expected to review and potentially freeze some litigation that does not involve fraud. Industry leaders have long called for clearer regulations, and the new SEC leadership may start a public consultation process to shape future crypto policies.

Trump’s administration is also expected to issue executive orders directing financial regulators to reassess their crypto policies. Bitcoin surged past $100,000 in December amid optimism about a more crypto-friendly regulatory environment. Legal experts caution that dismissing numerous enforcement actions would be unprecedented and could set a controversial precedent. However, settlement negotiations may offer a pathway to resolving disputes while maintaining accountability for fraudulent activities in the sector.