Trump Administration Plans SEC Cryptocurrency Overhaul, Freezes Lawsuits Soon – Blockchain News, Opinions, TV, Jobs

The presidency of Donald Trump has changed how virtual currencies are regulated. The SEC is pausing its lawsuits and reevaluating its enforcement strategy.

Reuters reports The new government will examine the SEC’s approach to handling cryptocurrency issues without fraud. This is a big shift from before. Under Gary Gensler, former head of the SEC, there have been more than 80 enforcement actions in the cryptocurrency space. A more measured response has replaced the confrontational style.

Paul Atkins, Trump’s nominee to head the Securities and Exchange Commission, is supposed to lead these transformations. Atkins, a crypto proponent, will likely work with Republican SEC commissioners Hester Peirce and Mark Ueda. Both commissioners have been highly critical of Gensler’s handling of the agency, which has stifled innovation in the fast-growing digital asset space.

Trump is calling for clearer regulations for cryptocurrencies through reform of the Securities and Exchange Commission

Pierce and Ueda are said to be considering strengthening the standards that determine whether cryptocurrencies should be considered securities. They are also considering changing other accounting rules that have prevented companies from storing cryptocurrencies for third parties. It is possible that some of these policies will be introduced in conjunction with Trump’s inauguration as early as next week.

Among the planned changes to the SEC’s structure is the idea of ​​starting public consultations on how to design specific new rules for Cryptocurrencies. Market participants have long been demanding higher privacy of rules, stating that current standards are insufficient and incompatible with modern decentralized digital assets.

“The industry requires this type of disclosure guidance in order to grow,” said a company spokesman who was familiar with the alternatives under consideration by the SEC. “This approach can bring out the right mix needed to stimulate innovation and discourage malicious actors.”

Some of these proposed differences have generated much controversy. Critics have said that freezing or dismissing pending cases could weaken investors’ assurances. However, legal critics have noted that the effort to change the current rules could be a nightmare, as it could delay enactment of the new rules in both the courts and Congress.

There is reason to believe that the cryptocurrency community will welcome this change in regulators’ approach. Bitcoin Prices rose to $99,000 due to Trump’s friendly policies towards cryptocurrencies.

During Gensler’s tenure, the SEC acted proactively and pursued an aggressive enforcement campaign based on the assumption that many of the tokens constituted unregistered securities. While some praised these efforts as necessary to curb fraud, others accused the agency of going too far.

Market participants expect the new SEC chief to continue the anti-fraud campaign but will be more helpful to companies seeking to adapt to the rules. “This shift may mark the beginning of a new chapter for the US cryptocurrency industry,” one analyst said. Director at a leading crypto company. “This seems to be changing from punishment to partnership.”

When the committee moves from one American leadership to another Crypto industry It is preparing for a possible change in rules that may reshape its further development. In the coming months, there may be very radical changes in how digital assets are regulated and adopted, especially with the support of the Trump administration.