SEC Commissioner Endorses Trump’s 2025 Initiative to Cease Crypto Crackdown

As a seasoned researcher with over a decade of experience at the SEC, I find myself both intrigued and hopeful about the potential changes in cryptocurrency regulation under the leadership of Uyeda as acting chair. His stance on pausing enforcement actions against crypto firms pending the establishment of clear guidelines aligns with the industry’s call for clarity and collaboration.


As Trump assumes office in January 2025, Uyeda is anticipated to serve as the acting chairman for the Securities and Exchange Commission (SEC).

Uyeda plans to hold off on taking further action against cryptocurrency companies yet to register with the SEC, until there are definitive rules and regulations in place for such firms.

The Commission’s battle against cryptocurrencies should conclude, including any enforcement actions taken solely due to lack of registration, without accusations of fraud or damage. This statement was made, emphasizing that President Trump and the American voters have conveyed a clear message. From 2025 onwards, it will be the Securities and Exchange Commission’s responsibility to follow through with this mandate.

Making such a move is consistent with Trump’s election promise to end what he referred to as the “cryptocurrency war” started by SEC Chair Gary Gensler. During his tenure over the last three years, Gensler has taken more than 100 enforcement actions against the cryptocurrency sector.

Uyeda Backs Trump’s Crypto Plan

Gensler’s investigations often focus on significant offenses like fraud and money laundering, with notable figures like Sam Bankman-Fried (the founder of the collapsed FTX exchange) being among the targets. Yet, not all cases are as severe; some involve claims of unregistered securities sales against entities such as Coinbase, Ripple, Kraken, Consensys, and Cumberland DRW.

The temporary halt in enforcing regulations has sparked debate about legal cases concerning businesses such as Coinbase and Ripple. If the SEC changes its viewpoint, it might impact court decisions, potentially leading judges to take into account the agency’s updated stance.

According to Gensler, most cryptocurrencies, apart from Bitcoin and Ethereum, are considered securities under the oversight of the Securities and Exchange Commission (SEC). However, this stance has faced significant opposition from the crypto sector, legal experts, and even some members of Congress. Critics within the commission like Uyeda and Hester Peirce have voiced their concerns about the current strategy, advocating instead for a more transparent regulatory framework and collaboration with industry players.

A New Direction for Crypto Regulation

Even though Trump has promised to dismiss Gensler on his inauguration day, he can only terminate his position as chairman. Gensler’s tenure as commissioner extends until June 2026, and there’s talk that he might decide to stay in order to impact policy-making. In the meantime, it’s expected that Uyeda will take over as acting chair until a new leader is selected.

Commissioner Peirce, whose term with the Securities and Exchange Commission (SEC) ends in June 2025, appears to have stated her preference not to serve as the chair of the SEC. Instead, she has expressed interest in taking on a role leading a “cryptocurrency task force.” This task force would focus on re-assessing the SEC’s strategy towards digital assets and encouraging constructive conversations with the cryptocurrency industry.

Known as the “Crypto Advocate,” Peirce has proposed “safe zones” where businesses dealing with innovative technologies such as blockchain and artificial intelligence can function under regulatory supervision, without the imminent risk of legal actions.

Industry Calls for Clear Guidelines

Uyeda has been openly critical of the SEC’s current crypto regulation methods. In an interview on Fox Business’s “Mornings with Maria” in October 2024, he labeled the agency’s policies as a “disaster for the entire industry.” He specifically criticized their strategy of creating policy through enforcement without offering clear guidelines.

Boasting more than fifteen years of service at the SEC, Uyeda has held numerous positions, such as Senior Advisor to former Chairman Jay Clayton, and roles within the Division of Investment Management. This rich background gives him a comprehensive grasp of regulatory terrain and the hurdles encountered by the cryptocurrency industry.

Many in the industry view Uyeda’s suggested pause on regulatory enforcement as a move towards a more cooperative and open approach to regulation. By suspending actions based solely on registration issues without accusations of fraud or harm, he intends to establish an atmosphere that encourages companies to innovate while striving for compliance.

 

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2024-11-10 18:14