With the inauguration of President Donald Trump, the way virtual currencies are regulated has changed. SEC suspends litigation and reevaluates enforcement strategy.
Reuters report The new administration says it will consider the SEC’s approach to non-fraudulent crypto cases. This is a big change from before. Under former SEC Chairman Gary Gensler, more than 80 enforcement actions were taken regarding cryptocurrencies. His confrontational style has been replaced by a more measured response.
Paul Atkins, who was nominated by President Trump to the SEC chairman position, is expected to lead the shift. Atkins, a crypto advocate, will likely work with Republican SEC commissioners Hester Peirce and Mark Ueda. Both commissioners have been highly critical of Gensler’s agency’s response to stifling innovation in the burgeoning field of digital assets.
President Trump calls for clearer cryptocurrency regulations in SEC review
Mr. Peirce and Mr. Ueda are said to be considering tightening the standards for whether virtual currencies qualify as securities. It is also considering changes to other accounting rules that have prevented companies from storing cryptocurrencies for third parties. Some of these policies could be introduced as early as next week, in time for President Trump’s inauguration.
Among the SEC’s structural change plans is the idea of initiating public consultations on how to design certain new rules. cryptocurrency. Market participants have long called for greater specificity in the rules, arguing that current standards are insufficient and do not support modern decentralized digital assets.
“This type of disclosure guidance is necessary for the industry to grow,” said a spokesperson familiar with the alternatives the SEC is considering. “This approach could create the right combination needed to thwart malicious actors while fostering innovation.”
Some of these proposed variations have generated a lot of controversy. Critics say freezing or dismissing pending cases could weaken investors’ safety net. But legal experts say any attempt to change existing rules could be a nightmare, with both courts and Congress potentially delaying enactment of new rules.
There is reason to believe that the cryptocurrency community will welcome this change in regulators’ approach. Bitcoin The price soared to $99,000 as President Trump was seen as having a friendlier policy towards cryptocurrencies.
During Mr. Gensler’s tenure, the SEC acted aggressively, pursuing an aggressive enforcement campaign based on claims that many of the tokens were unregistered securities. While some praised the efforts as necessary to crack down on fraud, others accused the agency of going too far.
Market participants hope the new SEC chief will stick to cracking down on fraud but be more helpful to companies trying to adapt to the rules. “This change could be the beginning of a new chapter for the U.S. cryptocurrency industry,” said one person. Director of a major cryptocurrency company. “This seems to be moving from punishment to partnership.”
When the committee moves from one leader to another, the American cryptocurrency industry Be prepared for possible rule changes that could reshape further evolution. The coming months could see very dramatic changes in the way digital assets are regulated and adopted, especially with support from the Trump administration.
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