Home > web3.0 > SEC May Soon Ease Regulatory Pressure on Crypto Industry, Former Official Says

SEC May Soon Ease Regulatory Pressure on Crypto Industry, Former Official Says

Barbara Streisand
Release: 2024-11-10 09:04:18
Original
1014 people have browsed it

Former SEC official John Reed Stark says the U.S. crypto industry may soon be under a new wave of regulatory pressure.

SEC May Soon Ease Regulatory Pressure on Crypto Industry, Former Official Says

The United States crypto industry may soon face a new wave of regulatory pressure, though it will mostly wind down as far as enforcement against crypto companies goes, a former SEC official has predicted.

This is largely due to the presidential election results and the likely changes in leadership at the U.S. Securities and Exchange Commission (SEC).

Crypto firms have been under the close watch of current SEC Chair Gary Gensler, including heavyweights like Coinbase, Kraken, and Consensys. Gensler has stated that his approach is based on the idea that cryptocurrencies should be treated like traditional securities.

Since he took this stance, there have been several high-profile enforcement actions. However, some lawmakers—including members of his own party—have criticized Gensler’s regulatory approach.

In September, Representative Ritchie Torres slammed Gensler’s broad application of the securities law to digital assets, which he said stifles the industry’s innovation.

Now, Stark believes that the vast majority of crypto space enforcement actions will die down, barring fraud or misconduct.

Gary Gensler Likely to Step DownThe SEC leadership may see big changes with Trump taking office, which will impact how regulatory priorities for crypto will operate.

Gensler, however, has suggested that he may step down as chair before Trump takes office. Instead, Trump could appoint one of the current Republican SEC Commissioners, like Hester Peirce or Mark Uyeda as interim chair.

In the crypto world, Peirce, nicknamed ‘Crypto Mom,’ has been a strong critic of Gensler’s attitude to crypto regulation. But she is viewed as more industry friendly.

She has stated that she is not interested in becoming SEC chairman after her current term. Another Republican commissioner, Uyeda, has also criticized the SEC’s handling of crypto, saying it’s hurting the industry.

Other possible candidates for the prominent role include former SEC Commissioner Paul Atkins, Robinhood’s chief legal officer Dan Gallagher, or ex head of the Commodity Futures Trading Commission, Chris Giancarlo.

Among these candidates, each has a good amount of regulatory experience and could go further lenient with crypto enforcement.

Peirce or Uyeda May Signal ReliefStark says while big changes will be expected, the SEC could continue to go after already advanced cases.

In cases where rulings are in process, the agency would likely try to put the cases to final settlements. But the number of enforcement actions against the crypto industry are expected to significantly drop.

As SEC Chair Gensler has pushed an aggressive enforcement strategy, the regulator has held that cryptocurrencies fall under securities laws.

He suggests that Peirce or Uyeda would likely be less interventionist, creating more space for the industry, should they take over. This change could clear the way for U.S.-based crypto firms to emerge, despite having largely struggled with regulatory uncertainty as a main impediment.

The above is the detailed content of SEC May Soon Ease Regulatory Pressure on Crypto Industry, Former Official Says. For more information, please follow other related articles on the PHP Chinese website!

source:php.cn
Statement of this Website
The content of this article is voluntarily contributed by netizens, and the copyright belongs to the original author. This site does not assume corresponding legal responsibility. If you find any content suspected of plagiarism or infringement, please contact admin@php.cn
Latest Articles by Author
Popular Tutorials
More>
Latest Downloads
More>
Web Effects
Website Source Code
Website Materials
Front End Template