According to Reuters, SEC Republican Commissioners Hester Peirce and Mark Uyeda may soon launch a procedure to explain the agency's position on crypto. This move could change the SEC's approach to cryptocurrency regulation.
The incoming Trump administration has promised a more crypto-friendly atmosphere. Trump has pledged to establish a strategic bitcoin reserve and cease the "unlawful crackdown" on the crypto industry. Paul Atkins, a crypto-friendly regulator, is expected to lead the SEC. Gary Gensler, the current Chair, will step down, as will Democratic Commissioner Jaime Lizárraga. This move gives Republican commissioners tremendous power.
Uyeda described the SEC's crypto strategy as a "disaster." Peirce proposes a three-year "safe harbor period" for blockchain ventures. The commissioners may examine pending crypto cases and freeze some non-fraud cases, thus relieving strain on the industry.
This proposed change comes in the wake of many SEC enforcement actions against crypto firms. These actions have included fraud charges and violations for failure to register correctly. The SEC's new direction might have a big influence on the crypto regulatory landscape. It may bring much-needed clarity to the sector.
