The SEC is embarking on a radical shift under the new administration. Strict regulations introduced under the previous administration are now being challenged, heralding a reduction in regulatory pressure on digital assets.
Abandoned Rules for a Significant Change
- Acting Chairman Mark Uyeda is considering withdrawing a rule imposing enhanced requirements on financial advisors to hold clients' cryptocurrencies.
- He is also questioning a monthly reporting requirement for certain funds, which he considers too restrictive and exceeding the legal framework.
A Strategic Reorientation
- A new task force dedicated to crypto is rewriting the relationship between the SEC and companies in the sector, with a more flexible approach.
- The stated goal is to foster innovation by reducing compliance costs while maintaining a minimum level of investor protection.
Opportunities and Risks of the Shift
Opportunities:
- Regulatory Relief: This allows crypto players to develop new products without fear of excessive obligations.
- Future Clarity: By establishing a new consultation process, the SEC is paving the way for rules better adapted to the blockchain ecosystem, particularly for DeFi platforms and stablecoins.
Risks:
- Lower vigilance: Overly lax regulation could facilitate abuses, including fraud or market manipulation.
- Loss of authority: Rapid changes can increase skepticism, particularly among traditional investors concerned about stability and oversight.
Conclusion
With this revision of the rules adopted under the previous administration, the SEC is ushering in a new era, one more favorable to crypto. While this stance can stimulate innovation and ease constraints, it also raises concerns about the future robustness of investor protection. The balance between flexibility and oversight will be crucial in the coming months.
