The Token Alliance has called on the U.S. Securities and Exchange Commission (SEC) to undertake a comprehensive review of all ongoing crypto-related investigations, coinciding with the anticipated leadership changes.
Token Alliance's Recommendations to the SEC
Proposals include reviewing existing investigations, issuing stays on non-fraud litigation, and abandoning enforcement-heavy policies. The group also urges rescinding the 2019 framework for the Howey test and rejecting the controversial Hinman speech, which has caused incongruities. Additionally, critics have highlighted the burden of SAB 121 rules on recognizing crypto holdings as liabilities.
A New Chapter for Crypto Regulation?
Leadership changes in the SEC board have sparked hopes for regulatory adjustments. SEC Chair Gary Gensler is set to step down on January 20. His tenure saw prominent lawsuits against major firms like Coinbase, Binance, and Ripple. Paul Atkins, expected to succeed Gensler, is perceived as more industry-friendly, fueling optimism for a balanced regulatory framework.
Possible Regulatory Changes
The advocacy group also urged the SEC to reconsider Rule 3b-16, which proposes expanding the definition of exchanges to include decentralized finance protocols. These recommendations may pave the way for a more cooperative regulatory environment.
Token Alliance's recommendations reflect the industry's call for clarity and fairness in crypto regulation. Whether the SEC will adopt these suggestions remains to be seen, but the hope for constructive dialogue is growing.
