Key Highlights
- Trump’s inauguration brings a new era of crypto regulation, boosting optimism among American crypto holders.
- Hester Peirce criticizes the previous regulation-by-enforcement approach, advocating for a more collaborative regulatory strategy.
- Michael Saylor highlighted the importance of constructive engagement between regulators and industry innovators for future growth.
After Donald Trump’s inauguration, the crypto regulation in the region has taken a new turn. American citizens holding cryptocurrencies are more optimistic than ever about the future of their assets and the crypto industry.
This renewed hope can be attributed to Donald Trump’s pro-crypto administration. Trump has issued executive orders in less than 40 days since taking office. Those mostly align with his promises during his election campaign last year.
Moreover, his orders brought both positive and negative consequences. On the downside, recent tariffs have raised market-wide pessimism.
However, on the positive side, it is evident in the declining lawsuits the SEC has recently dismissed. Also, the repeal of SAB 121 has provided much relief.
For instance, Coinbase, Robinhood, and many others have also seen their litigations thrown out. This change in crypto regulation stance has increased the hopes of many experts.
Similarly, a shift in regulation toward ETFs is anticipated. This leads to the approval of various altcoin ETFs.
For that, many AUMs, including Grayscale, have applied for ETF approval from the SEC. It wishes to track the prices of SOL, XRP, DOT, DOGE, and LTC. Michael Saylor also remarked that the crypto market is entering a new era. Keep reading to know more.
Crypto Regulation: SEC’s Strategy Under Gary Gensler Faces Criticism
Under Gary Gensler’s leadership, the SEC adopted a regulation-by-enforcement strategy to guide crypto firms on the right path. However, this approach has severely affected digital asset service providers like Coinbase, Binance, and Kraken.
While the crypto sector recognizes the necessity of crypto regulation, the prior SEC’s heavy-handed tactics have drawn significant criticism. Moreover, on X, Hester Peirce, an American lawyer and SEC Commissioner, recently commented on the agency’s new direction.
She emphasized that while enforcement is a crucial tool for the SEC. Although, it is not the appropriate method for shaping policy. Peirce made these remarks in light of the SEC’s decision to dismiss its case against Coinbase with prejudice.
In her statement, Peirce acknowledged the SEC’s settlement with Coinbase. However, she expressed concern over the broader implications of the regulation-by-enforcement approach. She argued that this strategy has stifled growth and innovation within the U.S. crypto landscape.
At last, she highlighted that the SEC needs to adopt a more collaborative approach to foster a balanced market.
SEC’s New Leadership and Policy Shifts Signal a New Era for Crypto Regulation
The recent changes within the SEC, particularly following Gary Gensler’s departure, have sparked conversations among key industry players.
Jorge Tenreiro is the agency’s Chief Litigation Counsel. He was pivotal in lawsuits against several major cryptocurrency exchanges and has been reassigned to the SEC’s IT department. This move is part of a broader effort to realign the U.S. crypto regulatory landscape.
Moreover, the new administration’s commitment to altering crypto regulation trends is becoming increasingly evident.
Similarly, Michael Saylor, founder of Strategy, quoted on Hester Pierce’s X post. He commented that the crypto market is entering a new era of constructive engagement between financial regulators and industry innovators.
Also, he said that this shift is one that leaders in the crypto space are likely to embrace wholeheartedly.
Additionally, Saylor’s X post stressed that this policy change is crucial. This could position the U.S. as a global leader in the developing digital economy.
Ivan Petrov is a seasoned journalist with deep insights into Russia’s dynamic crypto landscape. His work focuses on market dynamics and the transformative potential of blockchain technology, making him a go-to expert for understanding Russia’s digital financial innovations.