US Securities and Exchange Commission (SEC) officials Hester Peirce and Mark Uyeda are set to begin overhauling the agency’s cryptocurrency policies, potentially as early as next week when President-elect Donald Trump takes power. The pair, who have been described as crypto enthusiasts, are expected to kick off the process by initiating guidance or rules clarifying when the SEC considers a cryptocurrency to be a security.
Peirce and Uyeda will hold the majority among the agency’s politically-appointed commissioners, paving the way for a potential shift in the agency’s approach to cryptocurrencies. They have previously criticized former Democratic SEC Chair Gary Gensler’s tough stance on the industry and are seen as allies of Trump’s pick for SEC chair, Paul Atkins.
The new leadership is expected to review some crypto enforcement cases pending in courts, potentially freezing some litigation that does not involve allegations of fraud. Some defendants argue that cryptocurrencies are more like commodities than securities, and have called for the SEC to write new regulations clarifying when a token is a security.
Peirce and Uyeda will likely begin the process with a call for industry and public feedback, but reaching an agreement on crypto regulations could take months or longer. Dismissing dozens of enforcement actions would be unprecedented and could set a risky precedent by politicizing the enforcement process.
The move comes as President Trump is expected to end a crypto crackdown led by President Biden’s Democratic SEC chair Gary Gensler. The new leadership’s approach to cryptocurrencies will likely have significant implications for the industry, which has been subject to intense scrutiny under the previous administration.
Source: https://www.reuters.com/world/us/trumps-new-sec-leadership-poised-kick-start-crypto-overhaul-sources-say-2025-01-15