The SEC is set for significant changes next year as it operates with fewer commissioners until the Senate approves President-elect Donald Trump’s nominees. Current Republican commissioners Hester Peirce and Mark Uyeda will be the only ones remaining after SEC Chair Gary Gensler steps down. This shift could signal a change in the agency's approach to the crypto industry, according to Peirce.
Speaking at the Blockchain Association Policy Summit, Peirce emphasized that the SEC has various tools at its disposal, though enforcement has often been the go-to method for regulating crypto. She suggested that with new commissioners, the agency might see a different mix of cases and strategies moving forward.
Uyeda pointed out the need for transparency in policymaking, noting that most discussions at federal agencies like the SEC occur privately. He stressed the importance of the Administrative Procedure Act, which allows public feedback on regulations and ensures accountability. However, some policies, such as SAB 121, have bypassed public input, sparking criticism. SAB 121 required digital asset custodians to report liabilities and matching assets on their balance sheets. While Congress voted to overturn it, President Biden vetoed the resolution, leaving the policy in place.
Both Peirce and Uyeda expressed a desire for more opportunities for public engagement in shaping SEC regulations. Peirce acknowledged the challenges of shifting the agency’s current trajectory, emphasizing the need for collaboration between regulators and the crypto industry to rebuild trust. She addressed the crypto sector directly, stating, “It will take effort from both sides to move forward, but it’s achievable.”
These changes reflect a potential turning point for the SEC, particularly in how it manages the rapidly evolving crypto landscape.