SEC Reassesses Crypto Guidelines Amid Evolving Regulatory Landscape
The U.S. Securities and Exchange Commission (SEC) is taking a fresh look at how it handles cryptocurrency regulations.
Acting Chairman Mark T. Uyeda has directed SEC staff to reassess previous statements and guidelines concerning digital assets. This move aligns with the “Unleashing Prosperity Through Deregulation” initiative, part of Executive Order 14192. The aim is to evaluate whether current policies are still relevant or need changes to match the SEC’s evolving regulatory goals. Recommendations from the Department of Government Efficiency (DOGE) prompted this comprehensive review.
One major focus is a 2019 guideline that applied the Howey test to digital assets to determine their status as securities. The Howey test, originally designed to identify investment contracts, assesses whether profits are expected mainly from the efforts of others. The way this test has been applied to cryptocurrencies has sparked debate, especially after recent developments revealed that memecoins often fall outside traditional securities classifications.
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Another document under review is a 2021 SEC staff memo that raised caution about mutual funds investing in Bitcoin futures. At the time, concerns centered on market manipulation, liquidity issues, and volatility risks. However, the market has evolved significantly since then, with the rise of spot Bitcoin and Ethereum ETFs accumulating billions in assets under management.
The SEC is also reexamining guidance issued at the end of 2022, which was shaped by several major crypto bankruptcies. That advisory urged companies to disclose risks linked to digital assets, focusing on areas like custody, liquidity, and the potential impact on reputation amid heightened regulatory scrutiny.
Uyeda’s goal is to ensure that the SEC’s approach to digital assets is both current and practical, especially as the landscape of cryptocurrency continues to shift. The outcome of this review could lead to updates or even the removal of older, outdated guidelines.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
