
The SEC and crypto industry have a strained relationship. The 2018 Hinman speech has been a major issue.
The Token Alliance aims to improve this relationship. They advocate for clear, formal rules, a less enforcement-heavy approach.
A new leadership at the SEC, potentially more crypto-friendly, could facilitate these changes.
The U.S. Securities and Exchange Commission (SEC) has long been seen as a roadblock for the digital asset industry, leaving companies and investors in a state of uncertainty. But there are signs that things might be changing.
Recently, the Digital Chamber’s Token Alliance met with key SEC staffers, including Commissioners Hester Peirce and Mark Uyeda, to discuss the SEC’s priorities for digital assets in 2025.
Will regulators and the crypto world work together now – in an open, supportive relationship? Good times!
Keep reading to find out what’s next.
The Controversial 2018 Hinman Speech
One of the key issues discussed was the 2018 Hinman speech, which has caused confusion in the industry. The SEC’s Corporation Finance division has recognized the need to distance itself from the speech, which sparked confusion over the Howey Test. This test is used to decide whether an asset is a security, and critics argue it has been misapplied to crypto assets. The speech has been blamed for creating an uneven market, dividing projects into “winners” and “losers,” and undermining transparency and fairness.
To move forward, many believe it’s important to move away from such informal guidance. Experts are urging the SEC to focus on clear, formal rulemaking and issue no-action letters, which would give crypto firms a more straightforward path to compliance.
It’s (High) Time for Crypto-Friendly Regulation
The meeting also highlighted the Token Alliance’s vision for the SEC under a potential President Donald Trump administration. Trump’s likely choice for SEC Chair, Paul Atkins, is seen as a crypto-friendly figure with deep industry experience. Commissioners Peirce and Uyeda, who have criticized the SEC’s tough stance on crypto, could help lead the agency toward a more balanced approach.
Digital Chamber Has a Bold Agenda
The Token Alliance has laid out a bold agenda for the SEC’s first 90 days, including several important proposals. These include reviewing ongoing investigations, halting cases that don’t involve actual fraud, and rescinding confusing guidance like SAB 121.
The Alliance also advocates withdrawing proposed amendments that would redefine “exchange” to include decentralized finance (DeFi) protocols, a key issue for the rapidly growing DeFi sector.
Perhaps the most important proposal is a shift away from enforcement-driven regulation. The Digital Chamber called on the SEC to encourage a culture of transparency and collaboration. This would promote innovation and create a more supportive environment for digital asset firms.
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The Fresh Start We’ve Been Waiting For
The Token Alliance is optimistic about what the SEC’s new leadership could bring. By focusing on fairness, transparency, and collaboration, the SEC could finally provide the clear regulations the crypto industry has been waiting for. This could lead to more innovation and a stronger relationship between the SEC and the digital asset sector.
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Will these efforts succeed? Only time will tell.