The U.S. Securities and Exchange Commission (SEC) now requires approval from politically appointed leadership before launching formal investigations. This procedural change was introduced under the new leadership at the SEC following the shift from President Donald Trump's administration.
Changes in SEC Procedure
The change means that the SEC’s enforcement staff can no longer independently issue subpoenas or call witnesses. Instead, they must seek approval from the five commissioners who oversee the agency's work. This modification could potentially slow down investigations that require swift action. Critics believe this could delay enforcement actions, especially in urgent cases, while supporters argue it helps protect individuals from unwarranted probes.
Gary Gensler's Legacy and Mark Uyeda's Shift
This move comes amidst a leadership transformation within the SEC. Former chair Gary Gensler was known for his aggressive enforcement of securities laws, particularly in the cryptocurrency industry. During his tenure, over 100 enforcement actions were launched. With Gensler's departure, the focus under acting chair Mark Uyeda, appointed in 2022, is shifting towards a more balanced regulatory approach.
Mark Uyeda's Influence on Crypto Regulation
Mark Uyeda has expressed his intent to reverse some of Gensler’s policies, particularly those that created uncertainty in the crypto market. One of his main goals is to provide clear regulatory guidelines for digital assets and improve the environment for innovation. Uyeda emphasizes the need to provide clear documentation to avoid stifling innovation in the crypto industry.
The change in leadership and regulatory approach at the SEC offers a more transparent and predictable framework for crypto regulation. This could lead to clearer regulatory requirements, ultimately supporting innovation in the crypto industry.
