The U.S. SEC plans to review past crypto cases and potentially withdraw lawsuits, with changes expected after Trump’s inauguration.
The U.S. SEC plans to review past crypto cases once Donald Trump takes office. Some of those lawsuits, particularly where fraud is not alleged, may freeze. Some of these cases could be drawn back in later. In addition, the SEC could reverse accounting rules that require listed companies to account for expenditures related to holding crypto tokens on behalf of third parties at ‘carry cost.’
According to Reuters, Hester Peirce and Mark Uyeda, commissioners, are eyeing possible action that could boost new guidance. It is intended to make it clear when a particular cryptocurrency is a security. They also plan to reconsider some crypto enforcement cases that are still under consideration with the courts. These actions are set to take place after Trump’s inauguration.
SEC Expected to Withdraw Some Ongoing Crypto Cases Amid New Leadership
Although considered crypto-friendly, Paul Atkins is expected to be a SEC chair. The odds appear stacked that he would like to undo the cruel crypto policies laid down by Gary Gensler, the current president under Biden who sits on the SEC chair. It is not clear when the Senate will confirm Atkins in the role, though. On January 20, which also happens to be the day Trump is sworn in, Gensler has already announced he will step down.
Then Peirce and Uyeda will share control over the majority of politically appointed seats on the SEC. Those supposed to move forward with these changes. Peirce and Uyeda support cryptocurrency and have spoken out before about Gensler’s ‘tight grip.’ They have previously suggested crypto friendly alternatives.
Atkins was on the SEC from 2002 to 2008, and Peirce and Uyeda both worked for him. The three have a good work relationship and have talked about the change of crypto policies. The SEC is expected in the early days of the new administration to take up review of some ongoing court cases. Certain of these cases may be frozen, notably those without fraud allegations, and potentially withdrawn later.
Many defendants contend that cryptocurrencies are commodities rather than securities. In a statement, they say SEC rules are not clear about when they apply. Some of these defendants have also asked for new regulations that will clarify when a token crosses from a commodity to a security.
