Following Gensler’s Resignation and the Trump Administration, SEC’s Cryptocurrency Attitude is Envisaged to Change: What is the Status of the Cases?

The U.S. Securities and Exchange Commission (SEC) is on the verge of a significant transformation following the resignation of Chairman Gary Gensler.

As a new administration prepares to take office, President-elect Donald Trump crypto para He signaled a shift in the agency’s priorities by nominating his friend, former regulator Paul Atkins, to lead the SEC.

In early December, Trump announced Atkins’ candidacy via a post on Truth Social, praising crypto and his understanding of innovation as the key to “Making America Greater Than Ever.” Atkins, who served as an SEC commissioner during the President George W. Bush administration between 2002 and 2008, brings with him the experience he gained from his role on the board of advisors of The Digital Chamber, which he joined in 2020.

“Atkins really understands crypto,” Alison Mangiero, executive director of the Proof of Stake Alliance (POSA), said in an interview. “We will see an SEC with clearly different priorities than Gensler’s SEC,” he said, noting the potential for a sharp departure from Gensler’s approach.

Gensler and Democratic Commissioner Jaime Lizárraga announced their resignations at the end of November, leaving three Republican commissioners (Mark Uyeda, Hester Peirce and soon-to-be Atkins) at the helm of the SEC. However, the structure of the agency will change again, as the Biden administration will need to nominate a commissioner from a different political party in accordance with legal requirements.

Teresa Goody Guillén, partner at BakerHostetler and former SEC litigation counsel, explained that the new appointee could be from any non-Republican party, such as Democrat, Libertarian or independent. “While Atkins’ confirmation is expected to expedite the nomination process for the next commissioner, this appointment will likely compete with other priority presidential appointments,” Guillén continued.

Gensler, whose resignation will take effect the day Trump is inaugurated, has faced criticism from the crypto industry for his aggressive enforcement approach. During his tenure, he argued that most cryptocurrencies qualify as securities and called on crypto firms to register with the SEC. However, many industry leaders have argued that the current regulatory framework is not suitable for digital assets.

Mangiero predicts that under Atkins’ leadership, the SEC may explore new avenues, such as integrating staking into crypto ETFs and other financial products. “There are a lot of small issues that the SEC can address in its first few months to send a positive signal,” he said.

If approved, Atkins’ SEC is expected to impose fewer sanctions against crypto firms. “We are likely to see fewer non-fraud cases where there is no investor loss,” Guillén said. It also predicts a decline in new lawsuits aimed at setting regulatory precedents.

*This is not investment advice.