The relationship between the U.S. Securities and Exchange Commission and the digital asset industry has been rocky for years. But change may be on the horizon. In a recent meeting, the Token Alliance of the Chamber of Digital Commerce spoke with SEC staff for Commissioners Hester Peirce and Mark Uyeda to discuss the SEC's 2025 Digital Asset Policy Priorities. Cryptocurrency regulations in the U.S. have never been clear. Could this be a sign of the beginning of a more open and collaborative era?

Assessment of Hinman's Speech

A major focus of the discussion is Hinman's controversial speech from 2018. The SEC's Corporate Finance Division has prioritized the condemnation of this speech. It has been criticized for causing confusion, particularly regarding the Howey Test, the test that determines whether an asset qualifies as a security. This test has been misapplied to cryptocurrency.

Critics argue that the speech caused unnecessary confusion for the market and created a sense of bias. Essentially, it was seen as dividing the industry into 'winners' and 'losers', harming transparency and fairness.

The removal of the legacy of such informal guidance is seen as an important step. Instead, experts encourage the SEC to rely on formal, clear regulations and no-action letters to provide straightforward compliance pathways for cryptocurrency asset companies.

Building Trust with New Leadership

The meeting also clarified the Token Alliance's vision for the SEC under the incoming administration of President-elect Donald Trump. Trump's pick for SEC Chairman, Paul Atkins, is seen as a crypto-friendly figure with extensive experience. Commissioners Peirce and Uyeda, known for their criticisms of the SEC's aggressive anti-crypto enforcement, could help lead this reset process.

The agenda of the SEC's Digital Room in its first 90 days includes several bold moves. This includes reviewing ongoing investigations, halting cases with no actual fraud, and withdrawing confusing guidance like SAB 121. They also proposed retracting proposed amendments aimed at redefining 'exchange' to include decentralized financial (DeFi) protocols.

Perhaps the most important goal is to pivot away from enforcement-driven regulation. They call for the SEC to promote a culture of transparency and collaboration. This could encourage innovation in the digital space.

Expectations

The Token Alliance is optimistic about what the new SEC leadership can bring. Improving the relationship between the SEC and the digital asset industry could pave the way for clearer cryptocurrency regulations in the U.S. This would encourage more innovation and stronger mutual trust. By focusing on fairness and transparency, this could ultimately be the fresh start that this industry has been waiting for.

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