President-elect Trump of the United States is set to be sworn in next week, and the market is highly focused on the policy direction of the new Securities and Exchange Commission (SEC) management team. According to sources, Republican officials within the SEC are preparing to push for a comprehensive reform of cryptocurrency policy.
The Trump Administration Launches Cryptocurrency Policy Reform
According to informed sources, the two Republican commissioners of the SEC, known as the "Crypto Moms" Hester Peirce and Mark Uyeda, plan to push for multiple policy adjustments related to cryptocurrencies, including clearly defining when cryptocurrencies will be considered securities, as well as reviewing the cryptocurrency-related enforcement cases currently being handled by the courts.
Paul Atkins, Trump's nominee for SEC chairman, has received attention for his friendly stance towards cryptocurrencies, and is expected to terminate the strict regulation implemented under the previous chairman, Gary Gensler. However, as the Senate confirmation process still requires time, the short-term policy actions will be led by Hester Peirce and Mark Uyeda.
Further Reading: Crypto Mom Hester Peirce Praises New SEC Chair Paul Atkins as Highly Suitable, Suggests Three Key Tasks
Policy Focus: Freezing Litigation and Establishing New Regulations
Sources indicate that the new management team may temporarily freeze some enforcement cases unrelated to fraud, and may even withdraw some litigation. At the same time, they plan to initiate the preliminary process for new regulations, seeking public input to widely collect the industry's views on when cryptocurrencies should be considered securities.
Additionally, the SEC may quickly withdraw certain past accounting guidance, which had significantly increased the cost for listed companies to hold cryptocurrency assets.
The Tug-of-War Between Regulation and the Market
Under Gary Gensler's tenure, the SEC has taken strict regulatory measures on cryptocurrencies, initiating 83 enforcement actions, including lawsuits against major companies like the cryptocurrency exchange Coinbase and Kraken. However, the market expects the reform plans of the new management team to inject new momentum into the industry, but the related reforms may face legal challenges, particularly whether the courts will accept the withdrawal of enforcement cases.
A U.S. lawyer stated:
Whether pushing for new regulations or resolving enforcement cases, it will take a long time to negotiate and deliberate. Large-scale withdrawal of cases may politicize the enforcement process and potentially impact the credibility of the regulatory agency in the future.
The Policy Outlook of the Trump Administration
Trump has promised to become the "Cryptocurrency President" and attracted significant support from the cryptocurrency industry during the election. His administration may, through executive order, require regulatory agencies to comprehensively review the current cryptocurrency policies. In December last year, Bitcoin prices broke through the $10,000 mark, and the market is full of expectations for the new administration's crypto-friendly stance.
Further Reading: Trump Rumored to Repeal SEC's Accounting Bulletin SAB 121 on His First Day, Clearing Bank Crypto Custody Barriers
