The U.S. Securities and Exchange Commission (SEC) has recently revised its procedure for approving new investigations. This change coincides with Mark Uyeda taking over as Acting Chair following Gary Gensler's departure.
Investigation Approval Procedure
Previously, SEC enforcement staff could independently initiate investigations, but now they must secure approval from politically appointed commissioners to issue subpoenas or compel testimony. This change comes after the departure of former Chair Gary Gensler, potentially altering the SEC's approach to cryptocurrency oversight under Mark Uyeda's leadership.
Reaction to the Change
NFT analyst Tyler Warner views this as a necessary step to prevent 'rogue attacks,' ensuring investigations are based on solid proof rather than political or personal motives. However, retired SEC attorney Marc Fagel disagrees, believing this will slow down enforcement actions, benefiting fraudsters who exploit regulatory delays.
Impact on Crypto Investors
For crypto investors and companies, this change could reduce the risk of sudden regulatory actions. Under previous SEC leadership, crypto projects faced aggressive pursuits. With the new rule, companies may have more time and resources for growth, but too much freedom could risk increasing fraud.
The actual impact of the new SEC agenda for the crypto industry depends on how the new leadership enforces it. The crypto sector will closely watch Mark Uyeda and his team's actions.
