The U.S. Securities and Exchange Commission (SEC) under President-elect Donald Trump appears poised for a strategic shift in its treatment of cryptocurrency regulations, according to insights shared with Reuters by three unnamed individuals briefed on the matter.
Insiders Claim SEC May Ease Crypto Enforcement Under Trump Administration
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Report Says Pro- Crypto Agenda Will Drive SEC’s New Regulatory Approach
Reuters reports that Republican commissioners Hester Peirce and Mark Uyeda are anticipated to lead efforts to delineate the criteria for when cryptocurrencies qualify as securities, while also reevaluating ongoing enforcement actions against the industry, two sources revealed. The publication said that Peirce and Uyeda, both with ties to SEC chair nominee Paul Atkins, intend to launch these initiatives once Trump is sworn in on Jan. 20.
Atkins, widely regarded as an advocate for cryptocurrency innovation, is expected to adopt a less stringent enforcement approach than outgoing SEC chair Gary Gensler, though Atkins’ confirmation by the Senate remains unresolved. Reuters reporters Hannah Lang and Chris Prentice noted that during Gensler’s tenure, the SEC pursued 83 enforcement actions linked to cryptocurrencies, frequently asserting that tokens function as securities subject to agency oversight.
Sources are now saying that in the incoming Trump administration’s first week, the SEC may suspend or even retract certain litigation tied to non-fraud-related crypto cases, Reuters reported. Simultaneously, industry stakeholders expect the commission to seek public feedback on how to establish clearer regulatory guidelines for the sector.
At the same time, reporters Lang and Prentice further claim legal analysts warn that dismissing cases or easing enforcement could establish a politically charged precedent. However, they also noted that the new SEC leadership is still expected to take a hardline approach against crypto-related fraud.
These regulatory adjustments align with Trump’s broader pro-crypto agenda, shaped by his campaign promises to advocate for the industry. This shift arrives as enthusiasm within the cryptocurrency market reaches a fever pitch, with bitcoin hitting unprecedented highs in December 2024.
