The U.S. Securities and Exchange Commission (SEC) has introduced new rules requiring political leadership approval before launching formal investigations, which may affect the agency's speed and effectiveness.
Changes in SEC Investigation Procedures
According to Reuters sources, the SEC now requires approval from politically appointed leadership before launching formal investigations. Previously, staff members had the authority to issue subpoenas independently. Under the new rules, staff must gain permission from the five commissioners, potentially slowing down decision-making, especially in urgent cases.
Gary Gensler’s Legacy and Leadership Transition
These changes coincide with a leadership transition at the SEC. Former chair Gary Gensler, known for his strict securities and cryptocurrency enforcement policies, has stepped down. During his tenure, the SEC conducted over 100 actions against companies like Coinbase and Binance. However, with his departure, the agency is shifting to a more balanced approach under interim chair Mark Uyeda.
Mark Uyeda’s Influence on Crypto Regulation
Mark Uyeda, known for his more crypto-friendly stance, aims to reverse some SEC policies, particularly by clarifying digital asset regulation. He emphasizes the need for transparent and stable conditions for crypto innovation, marking a stark contrast to Gensler’s approach.
The leadership change and regulatory approach shift at the SEC might lead to a more transparent and predictable environment for cryptocurrency innovation.
