Republicans at the SEC are locked and loaded, ready to change the way crypto is regulated as Donald Trump steps into power.
Reportedly, the overhaul could start as early as next week. Trump’s pick for SEC chair, Paul Atkins, is a crypto fanboy who’s expected to pull the agency out of Gary Gensler’s enforcement-heavy era.
But Atkins’ Senate confirmation hasn’t happened yet, so the torch is temporarily with commissioners Hester Peirce and Mark Uyeda. These two are already drafting plans to untangle the messy web of crypto regulations left behind.
The first item on their agenda? Defining when a digital token is a security. This issue has haunted the crypto industry for years, with no clear answers. Peirce and Uyeda aim to start a public feedback process that will lead to new rules.
But that’s not all. They’re also diving into lawsuits that the SEC under Gary filed against crypto firms like Coinbase and Kraken. A review is in the works to decide which cases to keep and which to scrap.
Gary Gensler’s SEC left a trail of lawsuits
During Gary’s tenure, the SEC filed over 83 crypto-related enforcement actions. That’s not a typo—83. His team accused tokens of acting like securities and went after companies for allegedly breaking the rules. Many of these cases are still tangled up in court.
But now, Peirce and Uyeda are putting the brakes on this frenzy. Two sources say they plan to pause litigation that doesn’t involve outright fraud. Some cases might even get dropped entirely.
For companies caught in the crossfire, this is huge. Crypto firms have long argued that the SEC rules are unclear and that cryptos are more like commodities than securities. Peirce and Uyeda want to finally bring clarity.
But clarity doesn’t come easy. Lawyers warn that dropping enforcement cases could create chaos. “Dismissing dozens of cases would be unprecedented,” said Philip Moustakis, a former SEC attorney. “It could look like enforcement is being politicized.” Courts might even object.
If scrapping cases isn’t feasible, the SEC might try reopening settlement talks. That’s the norm in enforcement cases—companies negotiate to avoid drawn-out lawsuits. But under Gary, many crypto firms complained that the SEC wasn’t willing to come to the table.
Trump’s crypto revolution
Trump is expected to issue executive orders pushing all federal regulators to rethink their crypto policies. During his campaign, Trump called himself a “crypto president” and courted donations from the blockchain crowd.
Bitcoin is already feeling the love. It broke $100,000 in December, fueled by the hype around Trump’s crypto-friendly agenda. And it’s not just Bitcoin—Ethereum and other major tokens have been riding the wave too.
Meanwhile, Peirce and Uyeda are also looking to undo some of Gary’s less popular decisions. One target is the accounting guidance that made it insanely expensive for companies to hold crypto for others. Businesses have been begging for this rule to go, and it looks like they’ll get their wish.
But don’t think this means the SEC is going soft. Fraudsters are still in the crosshairs. And even with all these plans, don’t expect instant results. Rulemaking is slow, and resolving legal battles takes time. But the winds of change are blowing, and the crypto industry is watching closely. Trump’s administration has promised a fresh start, and for now, it looks like they’re delivering.
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