How Will the SEC Treat Cryptocurrencies During the Trump Era? What Will Be the Status of the Cases?

The U.S. Securities and Exchange Commission (SEC) is undergoing a leadership transition, according to comments from current commissioners. crypto para could see significant changes in its approach to regulating its industry.

The SEC will operate with a smaller team of commissioners starting next year, as SEC Chairman Gary Gensler will leave his post and the agency awaits the confirmation of President-elect Donald Trump’s nominees by the Senate. Republican Commissioners Hester Peirce and Mark Uyeda will be the only remaining members during the transition.

“We have a huge suite of materials,” Peirce said. “We have always turned to enforcement as our tool of choice in this area. “I think when there are new commission changes and the structure of the commission changes, the structure of the cases may also change.”

Uyeda stated that transparency and public input are important in shaping SEC policies. Uyeda touched upon the importance of the Administrative Procedure Law in ensuring accountability through public comments on regulations.

“It is our responsibility to the American people to ensure this transparency,” Uyeda said.

Uyeda also cited concerns about guidance issued by SEC staff without public consultation, citing the controversial Staff Accounting Bulletin (SAB) 121 as an example. The policy, which required digital asset custodians to report liabilities and corresponding assets on their balance sheets, was defeated by both houses of Congress before being vetoed by President Biden.

“It’s hard to prepare for change because we’ve come a long way,” Peirce said. “It’s going to take a lot of work, both from you and from us, to get back together, but I think we can do it.”

The upcoming leadership changes could mark a departure from the SEC’s enforcement-heavy approach to crypto regulation.

*This is not investment advice.