The Securities and Exchange Commission (SEC) is changing its tune on crypto. Instead of its previous aggressive tactics, it’s now taking a more collaborative approach.
No More “Gotcha” Games?
SEC Commissioner Hester Peirce says the agency is moving away from using enforcement as its primary regulatory tool. This means fewer lawsuits and investigations against crypto companies. The SEC has already dropped or paused several cases against major players like Binance, Coinbase, and Kraken. They’ve also closed long-running investigations into companies such as Gemini, Robinhood, and Yuga Labs without taking action.
Peirce believes many of these past actions were premature. However, she emphasizes that this doesn’t mean a free pass for bad actors. The SEC will still pursue clear securities violations. The goal is to move away from using the courts to make policy before the rules are even established.
A Phased Approach to Crypto Regulation
This shift follows efforts by the Trump administration to dial back aggressive enforcement and promote crypto growth. Peirce argues against an overly protective regulatory approach, stating that people lose money in many investments, and that shouldn’t automatically fall under SEC jurisdiction.
The SEC is working on a new crypto regulatory framework. While waiting for Congressional confirmation of certain appointments and other regulatory hurdles, Peirce confirmed that parts of this framework will be put in place this year. This includes clarifying which digital assets are considered securities. She’s aiming for a framework that protects investors while allowing the crypto industry to innovate and grow. Ideally, this clear legislation would have been in place years ago, she admits.
