The U.S. Securities and Exchange Commission (SEC) Braces for Major Policy Shift Under New Leadership
The U.S. Securities and Exchange Commission (SEC) is on the cusp of a significant policy change as it prepares for a transition in leadership. Commissioner Hester Peirce has hinted at a potential departure from the SEC’s traditionally cautious approach to cryptocurrencies in favor of a more innovation-friendly stance.
In an exclusive interview, Commissioner Peirce expressed optimism about the SEC’s future under incoming Chairman Paul Atkins, who is set to replace Gary Gensler on January 20, 2025. Peirce sees this transition as a time of “optimism” and “opportunity” for the agency.
Commissioner Peirce highlighted two key areas that could see reconsideration under the new leadership: cryptocurrency exchange-traded funds (ETFs) and staking for Ethereum-based ETFs. The SEC has been hesitant to allow in-kind payments for ETFs, which could streamline operations and enhance market efficiency. Similarly, U.S. issuers are currently prohibited from staking bitcoin and ethereum assets for yield.
Peirce believes that with a shift in the majority of Commissioners’ views, these issues could be addressed sooner rather than later. He also hinted at broader regulatory reforms, including potentially ceding some oversight responsibilities to the Commodity Futures Trading Commission (CFTC) for certain crypto markets.
According to Peirce, the SEC may consider issuing no-action letters or exemption orders to provide clearer guidance to crypto companies. Additionally, there could be a reevaluation of whether certain transactions should be classified as securities to avoid regulatory overreach.
As the SEC prepares for this potential policy shift, investors and industry players are closely monitoring the developments. It remains to be seen how the new leadership will navigate the complex landscape of cryptocurrency regulation and whether these changes will usher in a more innovation-friendly era for the SEC.
*This content is for informational purposes only and should not be construed as investment advice.