The U.S. Securities and Exchange Commission (SEC) could see significant changes to its approach to regulating the cryptocurrency industry as its leadership undergoes a transition, according to comments from current commissioners. The SEC will operate with a reduced team of commissioners starting next year as SEC Chairman Gary Gensler steps down from his position and the agency awaits Senate confirmation of President-elect Donald Trump’s nominees. Republican Commissioners Hester Peirce and Mark Uyeda will be the only remaining members during the transition. “We have a big package of materials,” Peirce said. “We have always looked to enforcement as our preferred tool in this area. I think when there are new commission changes and the composition of the commission changes, the composition of the cases may change.” Uyeda noted that transparency and public input are important in shaping SEC policies. Uyeda highlighted the importance of the Administrative Procedure Act in ensuring accountability through public comments on regulations. Related News: The Central Bank of South Korea issued a statement on Cryptocurrencies: A Positive Development “It is our responsibility to the American people to provide this transparency,” Uyeda said. Uyeda also cited concerns about guidance issued by SEC staff without public consultation, citing controversial Staff Accounting Bulletin (SAB) 121. The policy, which required digital asset custodians to report liabilities and corresponding assets on their balance sheets, was overturned by both houses of Congress before being vetoed by President Biden. “It’s hard to engineer change because we’ve come a long way,” Peirce said. “It’s going to take a lot of work from you and us to get back on track, but I think we can do it.” The impending leadership changes could signal a shift away from the SEC’s enforcement-heavy approach to crypto regulation. *This is not investment advice. Continue Reading: How Will the SEC Treat Cryptocurrencies Under Trump? What Will Be the Status of the Cases?
