The SEC is backing off its crypto war. After years of aggressive enforcement under Gary Gensler, the agency is dismantling its specialized crypto unit. Over 50 lawyers are being reassigned to other departments. The days of “regulation by enforcement” might finally be over.
Acting SEC Chair Mark T. Uyeda has made it clear he’s not Gensler 2.0. He’s pro-crypto, pro-innovation, and apparently pro-not-suing-everything-that-moves. What a concept. The move aligns perfectly with the Trump administration’s stance that America should be “the crypto capital of the planet.” Bold words. We’ll see.
The “Spring Sprint Toward Crypto Clarity” kicked off March 21, 2025, with its first public roundtable. Finally, something besides closed-door meetings and surprise lawsuits. The series aims to define what makes a digital asset a security. Novel idea—actually explaining the rules before enforcing them.
Coinbase’s case remains the elephant in the room. The exchange, charged with operating without proper registration, has become the test case for Gensler’s crypto theories. Their CEO isn’t playing nice either, vowing never to work with firms that hire former SEC officials. Among the significant executive actions, Trump signed an order specifically aimed at eliminating regulatory overreach in the cryptocurrency sector. Grudges run deep in crypto.
Industry reaction has been predictably mixed. Bitcoin and Ethereum prices jumped on the news. Crypto ETFs are seeing green. But many remain skeptical. They’ve heard promises before.
The regulatory shift doesn’t exist in a vacuum. Ripple’s victory against the SEC set an important precedent, with a federal judge ruling XRP “not necessarily a security.” That decision sent shockwaves through the regulatory landscape. Clearer regulations are providing market certainty that could sustain cryptocurrency growth beyond short-term price jumps.
Globally, the U.S. is playing catch-up. Other countries established clear frameworks years ago while America was busy sending subpoenas. The task force is struggling with defining jurisdiction over transactions versus the underlying digital assets themselves. The task force, led by long-time crypto advocate Hester Peirce, faces the challenge of balancing investor protection with innovation.
The big question remains: can they create workable rules that protect consumers without killing the technology? The crypto world is watching. Cautiously optimistic, but ready for disappointment.
