Recent encryption updates from the Trump administration

Recent organizational developments in the field of encryption assets and financial technology indicate that American organizers may turn towards a more balanced approach-which gives priority to students clearer while enhancing innovation on a more reliable strategy. President Trump’s executive order on this issue is to restore the Biden administration’s approach to encryption assets by eliminating many of the previous administration policies on encryption and establishing the president’s work group in digital assets markets (the working group). The Chairman of the US Securities and Stock Exchange Committee (SEC), Acting Marc Oida, restarted the SEC Checks, where he appointed Commissioner Hyster Peres to lead her efforts and set her goals. The Supreme Education Council has also moved to problematic accounting directives and temporarily stopped. Procedures against major encryption companies. The currency (OCC), has not yet taken similar steps. -I am the transformation that has developed towards the organizational clarity of the encryption that balances innovation and the protection of the investor.

If these developments are positively received by the industry, we expect more investment and new expatriates in the area of ​​encryption assets. In particular, we can expect additional research and development and new innovations by both startups and current institutions. Previous courses brought a race to develop valuable technology and clarify intellectual property rights to capture the value represented by those innovations.

Trump administration’s executive order for encryption assets

On January 23, 2025, President Trump Executive order Entitled “strengthening American leadership in digital financial technology”, which creates a new framework for the policy of encryption assets. The request cancels the previous executive order 14067 and the Ministry of Treasury, “International Participation Framework in Digital Assets”, which effectively reflects the previous administration’s approach to regulating encryption. The Trump administration policy refers to the preference of Blockchain open networks open, and it opposes the creation of a digital currency of the Central Bank of the American Bank (CBDC) or the recognition of the Convention (CBDC) issued by other countries, and seeks to provide organizational certainty through better specialized limits.

The CEO also established the president’s work group in the digital asset markets, headed by David Sachs as a special adviser to Amnesty International and encryption. The Working Group’s state is to develop a federal regulatory framework that governs encryption assets, including stablecoins, and evaluating possible construction and maintenance inventory of national encryption assets. They are assigned to submit a report to the president within 180 days, recommending the organizational and legislative proposals that submit the policies specified in the executive order.

Federal agencies, including SEC and CFTC, must now review and may cancel the previous organizational directives that contradict this new trend. In addition, the working group will evaluate the feasibility of a national encoding of national encoding from the encrypted currencies that have been legally seized and seeks to ensure that the current and future American regulatory frameworks support the American leadership in Blockchain and digital financial technology.

Restart the encrypted work team and a temporary stop on the Binance application

In a related development, the Supreme Education Council It has reshaped a customized new encryption squad Leaded by Commissioner Hyster Pears (Labor Squad). In an advertisement entitled “Crypto 2.0”, Commissioner Uyeda stated that among other things, the Labor Squad aims to solve long uncertainty in regulating encryption by developing clear registration paths, enhancing detection frameworks, and ensuring a more consistent application strategy. Many criticized SEC’s previous organizational approach to relying heavily on enforcement procedures, which led to uncertainty for the participants in this field. According to what was reported, the work group will cooperate with stakeholders in the public and private sectors, including Congress, CFTC, and international organizers, to form a more coherent organizational approach. The release, which announces the work group, admits the need for a clear organizational framework that enhances both innovation and the protection of the investor.

Soon after the announcement of the work band, SEC and Binance I jointly requested a 60 -day residence From the lawsuit of the Supreme Education Council against encryption exchange, noting the possible impact of the newly created work squad. SEC previously sued Binance, its American unit, and the founder of Changpeng Zhao in June 2023, claiming market treatment and tricking the investor. The request indicates a possible shift in the SEC enforcement strategy, where some are seen as a step towards a more convenient position in line with the goals of the broader president in the industry. A similar pause was also requested in the SEC’s continuous procedure against Coinbase.

Commissioner Pearce’s statement on the future of encryption organization

There February 4 statement entitled “The Journey Begins”, Commissioner Peres explained the goals of the work band and the most prominent major areas of focus.

1. Clarify the state of “security”. The “Working Squad” to evaluate different types of encryption assets and determine their position under Securities Laws. Currently, market participants face uncertainty about whether some of the encryption assets are qualified as securities, which affect compliance, trading, and broader market adoption. So far, SEC has been largely relied on enforcement procedures to determine its position, leaving investors and other market participants without clear regulatory guidelines. Create a clear working framework to help determine the safety state of encryption assets has the ability to provide the organizational certainty that affects the need, support responsible innovation, and facilitate greater institutional participation in the encryption markets.
2. Provide a road registration and trading for unregistered offers. The work band “thinks about” recommending the formation of SEC for temporary grants Tabers and retrospective impact Reducing practical presentations or the distinctive symbol is not registered with SEC if the entity bears responsibility for providing specific information, updates it, and accepts SEC’s jurisdiction in fraud cases. These currencies or unique symbols will be considered uncompromising, allowing trading on unregistered secondary markets if current disclosure remains. Possible success or such a proposal failure will depend on the specific disclosure requirements imposed and on whether relief provides real benefits while avoiding excessive regulatory burdens.
3. New encrypted investment funds, tricks, summaries and in -kind summaries. The work group “SEC employees to clarify the SEC approach to agree to or reject the changes in the proposed base to list new types of products circulated in the exchange of encryption. So far, the Supreme Education Council has followed a cautious approach to the funds circulating in the exchange of encryption (ETFS), or the concentration of investments On the origins of the encrypted currency, only approval. ETFS is also involved in stokeing. Additional for investors from During the participation of the network’s health, and aligning ETF returns with closely with the capabilities of the basic assets. Allowing creations and recovery in kind-where ETF shares are exchanged directly to encryption assets instead of cash-can also reduce the costs of transactions, improve tax efficiency, and reduce Tracking errors. Providing ETF investors with more cost access and capital efficiency effectiveness to encryption assets.
4. Treating lending programs and abandoning encryption. The work band “Plan”[s] To work “to help address how to organize encrypted lending programs and tricks in line with the applicable law. At the present time, these programs face great organizational uncertainty, especially with regard to whether they include securities offers subject to the requirements of registration of the Supreme Education Council and the protection of investors. I continued. The Securities and Stock Exchange Commission enforcement against some encryption platforms, but clear directives about the compatible structures are still not Existing. Create clear guidelines for lending programs and confusion to provide more confidence in accessing exciting rewards while ensuring that these services are done transparently and in compliance with organizational protection.
5. Clarify the nursery solutions for investment consultants. The work squad will work with the investment consultants to provide a framework through which the advisers can be able Investment Advisers Law for the year 1940), which requires customer money and securities that are kept. Qualification. The organizational is largely for consultants for both individuals and investment funds and helping to expand institutional participation in the asset markets Cryptocurrency.
6. Update special intermediate relief purposes. The work squad will “explore” updating the intermediary framework for its purposes to allow the broker to win the securities to the assets of encryption, along with the encryption assets that are not securities. The current securities laws actually prevent the mediator from facilitating transactions in many encryption assets, which greatly limits their ability to provide comprehensive services related to encryption. SEC’s previous relief for brokers for special purposes was very tightly designed and imposed operational restrictions on mediators, making them unclean for most. Expanding the working framework to allow the custody of both security and non -security encryption assets will be a first useful step in expanding its gravity.

If the work group can achieve half of these goals, it preaches well with the largest encryption community.

There may also be a reason for hope for this progress. The Commissioner Peres also noticed, I recently canceled the Supreme Education Council “SAB 121”, which calls for obtaining accounting bulletin No. 121. SAB 121 was issued by the Office of the Supreme Education Council and the Institutional Finance Department in March 2022, and this financially requires the institutions that have fallen On encryption assets to register them as assets and opponents on their public budgets. As a result, banks and other financial institutions have faced capital requirements much higher when retaining encryption assets compared to traditional assets, making the encryption nursery expensive for many. Consequently, the cancellation of SAB 121 simultaneously removes a major organizational obstacle to providing encryption nursery and represents a meaningful transformation in SEC’s organizational approach.

conclusion

While many questions remain, it appears that the above organizational developments indicate a major shift in the treatment of encryption assets by the Supreme Education Council. In the encryption space, relaxation of organizational restrictions often leads to new technological progress to growth for the most innovative players, which can expand the market share and valuable intellectual property rights. Market participants should remain proactive in monitoring developments and developing themselves to take advantage of the new opportunities that will appear.