The U.S. Securities and Exchange Commission (SEC) is about to go through some changes in the next year, working with fewer commissioners until the Senate approves President-elect Donald Trump’s nominees.
After SEC Chair Gary Gensler left, Republican commissioners Hester Peirce and Mark Uyeda will stay, which might change how the agency regulates the cryptocurrency sector.
In her speech at the Blockchain Association Policy Summit, Peirce pointed out the different regulatory tools the SEC has, mentioning that enforcement has mostly been the preferred way to regulate the crypto industry. She expects changes in the agency’s case selection and regulatory strategies with the new commissioners coming in.
Uyeda highlighted the need for openness in the SEC’s policymaking, pointing out that discussions in federal agencies often happen out of public view. He highlighted the importance of the Administrative Procedure Act, which allows the public to give input on regulations, making sure there is accountability.
He noted that some policies, like SAB 121, which requires digital asset custodians to reveal their liabilities and assets, were put in place without asking for public input, causing some pushback. Congress tried to repeal SAB 121, but President Biden’s veto has kept it in place.
Peirce and Uyeda both showed a strong dedication to improving public involvement in the SEC’s rules. Peirce recognized the difficulties in changing the agency’s direction but emphasized the need for teamwork among regulators.
