Trump's new SEC administration, expected to take office on January 20, is set to review cryptocurrency policies and potentially suspend sanctions temporarily.
New SEC Administration
The new SEC administration that Trump will appoint is currently reviewing some cryptocurrency cases pending in the courts. The administration could freeze cases that do not involve allegations of fraud.
Paul Atkins Nomination
Crypto-friendly nominee Paul Atkins is expected to end Biden’s crackdown on cryptocurrencies driven by Democratic SEC chairman Gary Gensler, but it is not yet clear when the Senate will confirm his nomination.
Current SEC Legal Cases
Gensler’s SEC, concerned about fraud and market manipulation, has initiated at least 83 crypto-related enforcement actions. It is expected to begin reviewing these cases in the first few days of the new administration and freeze some cases that do not involve allegations of fraud. Some cases might even be dropped. SEC filed lawsuits against leading exchanges such as Coinbase and Kraken, alleging that the exchanges were offering cryptocurrencies that were actually securities and not complying with SEC rules.
The introduction of new guidelines could significantly impact the cryptocurrency market. The coming months will show the path the new SEC administration will take.
