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The Coin Rise 2024-12-19 11:20:21

Crypto Advocacy Group Urges SEC Reset Under Trump Administration

The Digital Chamber’s Token Alliance has called on the U.S. Securities and Exchange Commission (SEC) to undertake a comprehensive review of all ongoing crypto-related investigations and lawsuits, coinciding with the anticipated leadership changes in the forthcoming Trump administration. This recommendation, issued on December 18, reflects the group’s hope for a “reset” in the SEC’s relationship with the cryptocurrency sector , which has often been marked by tension and regulatory uncertainty. Paul Atkins, Trump’s nominee for SEC chair and a former commissioner, is a member of the alliance’s advisory board, signaling potential alignment in priorities. The advocacy group also noted the need to rebuild trust between the SEC and the digital asset industry. Token Alliance’s Recommendations to the SEC The Token Alliance’s proposals include reviewing existing investigations, issuing stays on non-fraud litigation, and abandoning enforcement-heavy policies. They also urge the SEC to rescind the 2019 framework for applying the Howey test to digital assets, which the group claims has fostered confusion and inconsistency. Additionally, the group recommends rejecting the controversial Hinman speech as a reference for determining token classifications. Critics argue the speech, delivered by former SEC Director William Hinman, has led to unequal treatment of market participants. Another contentious point is the SAB 121, which mandates SEC-reporting entities to list cryptocurrency holdings as liabilities. The Digital Chamber described the rule as excessively burdensome, and lawmakers have voiced concerns that it could drive U.S. investors toward unregulated custodial solutions abroad. A New Chapter for Crypto Regulation? The upcoming leadership transition, with SEC Chair Gary Gensler stepping down on January 20, has raised hopes for a regulatory shift. Under Gensler’s tenure, the SEC pursued high-profile lawsuits against Coinbase , Binance, and Ripple, among others, while issuing Wells notices to companies like Uniswap and Immutable. Paul Atkins, expected to replace Gensler, is seen as a more industry-friendly figure . His tenure as commissioner from 2002 to 2008 suggests a pragmatic approach, fueling optimism for a balanced regulatory framework. The advocacy group also urged the SEC to reconsider Rule 3b-16, which proposes extending the definition of exchanges to include decentralized finance (DeFi) protocols. Industry stakeholders anticipate whether these recommendations will lead to a more cooperative regulatory environment. The post Crypto Advocacy Group Urges SEC Reset Under Trump Administration appeared first on TheCoinrise.com .

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