SEC Commissioners Indicate Shift from Enforcement Actions Expected
Starting next year, the SEC will operate with a reduced team of commissioners pending Senate approval of President-elect Donald Trump’s nominees.
SEC Commissioners Hester Peirce and Mark Uyeda, both Republicans, will be the only sitting commissioners after Inauguration Day. Following SEC Chair Gary Gensler's departure, there is expected to be a significant shift in the agency's approach to the crypto industry, according to Peirce.
“We have a big toolkit,” Peirce stated at the Blockchain Association Policy Summit. She noted that the agency has predominantly relied on enforcement as its primary tool in this area, suggesting that changes in commission composition could lead to different case mixes.
Uyeda highlighted that many policy discussions within federal agencies occur behind closed doors. He emphasized the importance of the Administrative Procedure Act for public comments on regulations, which ensures accountability and transparency.
In situations where staff guidance diverges from SEC rules, such as with SAB 121, no public comment period exists. This policy, which requires digital asset custodians to report liabilities and corresponding assets, was ultimately vetoed by President Biden after Congress attempted to overturn it.
Uyeda expressed anticipation for increased public input opportunities from the agency. Peirce acknowledged the challenges of navigating the current regulatory landscape but underscored the necessity of collaboration between the SEC and the crypto industry to make progress.