SEC to Operate with Fewer Commissioners After Gensler Steps Down
The SEC is undergoing significant changes as it will operate with fewer commissioners until the Senate confirms President-elect Donald Trump’s nominees. Current Republican commissioners Hester Peirce and Mark Uyeda will remain after SEC Chair Gary Gensler steps down. This transition may alter the agency's approach to the crypto industry, according to Peirce.
At the Blockchain Association Policy Summit, Peirce highlighted that the SEC possesses various regulatory tools, although enforcement has often been prioritized in crypto regulation. She indicated that new commissioners might lead to a different mix of cases and strategies.
Uyeda emphasized the need for transparency in policymaking, noting that many discussions at federal agencies like the SEC are conducted privately. He underscored the importance of the Administrative Procedure Act, which allows public feedback on regulations and ensures accountability. However, some policies, such as SAB 121, have circumvented public input, attracting criticism. SAB 121 mandates digital asset custodians to report liabilities and matching assets on their balance sheets. Despite Congress voting to overturn it, President Biden vetoed the resolution, maintaining the policy.
Peirce and Uyeda both advocated for increased public engagement in shaping SEC regulations. Peirce recognized the challenges in altering the agency’s current direction and stressed the need for collaboration between regulators and the crypto industry to rebuild trust. She stated, “It will take effort from both sides to move forward, but it’s achievable.”
These developments indicate a potential turning point for the SEC in managing the rapidly evolving crypto landscape.