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As we look towards the upcoming year, the Securities and Exchange Commission (SEC) is set to operate with a reduced team of commissioners as we await the Senate’s approval of President-elect Donald Trump’s nominees.
Following the departure of SEC Chair Gary Gensler, the agency will be left with only two sitting commissioners, Hester Peirce and Mark Uyeda, both Republicans. Peirce anticipates a significant shift in how the SEC approaches the crypto industry in the absence of Gensler.
During a recent appearance at the Blockchain Association Policy Summit, Peirce emphasized the agency’s diverse toolkit, noting a historical inclination towards enforcement in the crypto space. With upcoming changes in commission composition, Peirce suggests a potential evolution in the types of cases pursued by the SEC.
Uyeda highlighted the inherent privacy of policy discussions within federal agencies, underscoring the importance of the Administrative Procedure Act in facilitating public input on regulations. However, instances where agency guidance diverges from SEC rules, such as SAB 121, may not undergo a public comment period.
Despite efforts by Congress to reverse policies like SAB 121, President Biden ultimately vetoed such resolutions, showcasing the complexities of regulatory decision-making. Uyeda expressed optimism regarding increased opportunities for public engagement within the agency’s processes.
Peirce acknowledged the challenges ahead in recalibrating the SEC’s approach to the crypto industry, emphasizing the collective effort required to navigate this transition successfully.