Changes in SEC's Cryptocurrency Policy: From Strict Measures to a Friendlier Stance?
Recently, the U.S. Securities and Exchange Commission (SEC) has shown a significant shift in its cryptocurrency regulatory direction. Particularly noteworthy is the sudden reassignment of Jorge Tenreiro, the Chief Examiner who had been leading a strict litigation strategy, to the IT department, drawing considerable attention from the industry.
For a long time, the SEC has been engaged in legal battles against major cryptocurrency firms such as Coinbase and Binance. However, it appears that the agency is now moving towards regulatory relaxation and seeking collaboration with the industry.
Reasons for the SEC's Shift: From Strict Regulation to Cooperation
The SEC's decision to alter its tough stance can be attributed to three main factors:
- Political Changes
On January 20, 2025, the Trump administration removed former SEC Chairman Gary Gensler, resulting in new leadership. The newly appointed Acting Chairman, Mark Uyeda, supports pro-cryptocurrency policies and has established a task force to redefine the regulatory direction. - Lobbying Activities by Cryptocurrency Firms
Major cryptocurrency companies, including Coinbase and Binance, have invested substantial amounts into political action funds to support pro-cryptocurrency politicians. This has created an environment where the SEC finds it challenging to maintain aggressive legal actions. - Legal Defeats and Loss of Credibility
The SEC faced a setback in its legal credibility after losing a lawsuit against Ripple in 2024. Allegations of evidence tampering arose in the 2019 Veritaseum case and the recent Debt Box incident, revealing limitations in the SEC's strict regulatory strategy.
Potential Impact on the Cryptocurrency Industry
- Regulatory Relaxation Focused on Litigation
The task force led by Commissioner Hester Peirce is aiming to reduce the proliferation of lawsuits against cryptocurrency companies and establish a new regulatory framework. - Possible Introduction of an Amnesty Program
The SEC is considering implementing a Temporary Amnesty program for cryptocurrency firms that meet certain criteria, allowing them to engage in trading on exchanges as long as they disclose only basic investor protection information. - Allowance of Cryptocurrency Custody Services
The SEC has decided to withdraw accounting guidelines that previously made it difficult for banks to offer cryptocurrency custody services. As a result, banks and financial institutions may be more inclined to support cryptocurrency services actively.
Conclusion: A Positive Signal for the Cryptocurrency Market
Historically, the SEC's stringent regulatory policies have dampened the cryptocurrency market. However, due to recent political shifts, legal defeats, and lobbying efforts, the agency appears to be modifying its stance.
In particular, the introduction of an amnesty program, the allowance of custody services by banks, and a focus on reducing litigation-driven regulation send positive signals to the industry. Moving forward, it is crucial to observe whether the cryptocurrency market can step out of regulatory uncertainty and thrive in a clearer legal framework and collaborative environment.
This article does not constitute investment advice or financial recommendations. Cryptocurrency investments carry high risks, and the responsibility for any investment decisions lies solely with the investor.
