Trump’s SEC to revise crypto policies reshaping enforcement rules

SEC’s Republican commissioners are preparing to overhaul the agency’s crypto policies as President-elect Donald Trump takes office, according to a Reuters report.

Commissioners Hester Peirce and Mark Uyeda are set to begin reforms as early as next week, focusing on clarifying crypto asset securities classifications and reviewing enforcement cases.

Sources familiar with the matter indicate the agency may pause or withdraw some non-fraud litigation.

The policy shift comes as Paul Atkins, Trump’s nominee for SEC Chair, is expected to reverse the regulatory approach of outgoing Chair Gary Gensler.

Atkins, a former SEC commissioner, is anticipated to implement more crypto-friendly policies following Senate confirmation.

Peirce and Uyeda, both former aides to Atkins, plan to initiate new rulemaking by seeking public and industry input on crypto token classification.

The SEC launched 83 crypto-related enforcement actions during Gensler’s tenure, targeting companies like Coinbase and Kraken.

The new leadership is expected to rescind accounting guidance that has limited public companies from holding crypto for clients. Trump has pledged to be a “crypto president” and plans executive orders to reassess crypto regulations.

Legal experts warn of potential challenges. Philip Moustakis notes that dismissing enforcement actions or revising settled cases could face court resistance.

Robert Cohen, a former SEC enforcement division official, said: “I think the industry wants to see fraudsters or wrongdoers held accountable.”

Bitcoin neared $100,000 as markets reacted to cooling inflation reflected in the latest CPI report.