Top Republican officials at the Securities and Exchange Commission (SEC) are reportedly preparing to overhaul digital asset policies when President-elect Donald Trump takes office next week. The planned changes come as Bitcoin trades near $100,000, reflecting market optimism about a potentially friendlier regulatory environment under the incoming administration.
New SEC Leadership Positioned to Begin Regulatory Reset for Cryptocurrency
Republican commissioners Hester Peirce and Mark Uyeda are positioned to begin implementing crypto-friendly policies immediately after January 20, when current SEC Chair Gary Gensler steps down. Their agenda includes clarifying when cryptocurrencies are considered securities and reviewing ongoing enforcement cases that don’t involve fraud.
The new approach marks a sharp departure from Gensler’s tenure, during which the SEC brought 83 crypto-related enforcement actions, including high-profile cases against Coinbase (NASDAQ: COIN) and Kraken. Trump’s pick for SEC chair, Paul Atkins, is expected to support this regulatory shift, having previously worked with both Peirce and Uyeda at the agency from 2002 to 2008.
The changes could include rescinding accounting guidance that makes it costly for companies to hold crypto for third parties and reopening settlement negotiations with crypto firms.
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Bitcoin Breaks $99,000 Amid Hopes of Regulatory Reset
The cryptocurrency market has responded positively to the potential regulatory changes, with Bitcoin trading at $99,274.65, up 2.65% in recent trading.
The flagship cryptocurrency has shown remarkable strength recently, hitting a new all-time high last year with a market capitalization of $1.967 trillion and daily trading volume exceeding $56 billion across almost 12,000 active markets; Bitcoin remains one of the most substantial and most popular digital assets.
Bitcoin’s robust performance reflects growing institutional confidence in the digital asset sector. The cryptocurrency’s price movement suggests investors are betting on a more accommodating regulatory framework under the incoming administration.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
