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Important points
- Republican SEC commissioners plan to investigate cryptocurrency enforcement cases and clarify the definition of securities.
- Incoming SEC Chairman Paul Atkins is expected to reverse Gary Gensler's crackdown, with a focus on accountability for wrongdoing.
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Reuters reports that Republican commissioners at the SEC are preparing to overhaul the agency's crypto policy in the wake of President-elect Donald Trump's inauguration.
Commissioners Hester Peirce and Mark Ueda plan to begin reforms next week, which will focus on clarifying the classification of crypto-asset securities and reviewing enforcement cases.
Sources said authorities may suspend or drop some non-fraud cases.
The policy shift comes as Paul Atkins, President Trump's pick to lead the SEC, is expected to reverse the regulatory approach of outgoing Commissioner Gary Gensler.
Atkins, a former SEC commissioner, is expected to introduce more crypto-friendly policies if confirmed by the Senate.
Peirce, a former Atkins aide, and Ueda plan to seek public and industry input on the classification of crypto tokens and begin writing new rules.
During Gensler's tenure, the SEC initiated 83 crypto-related enforcement actions targeting companies such as Coinbase and Kraken.
The new leadership is expected to rescind accounting guidelines that have restricted publicly traded companies from holding cryptocurrencies on behalf of their customers. President Trump has vowed to become the “crypto president” and is planning an executive order to reevaluate crypto regulations.
Legal experts warn of potential problems. Philip Moustakis points out that dismissing enforcement actions or amending settled cases could face court resistance.
“I think the industry wants to see fraudsters and fraudsters held accountable,” said Robert Cohen, a former SEC enforcement division official.
Bitcoin nears $100,000 as the market reacts to the slowdown in inflation reflected in the latest CPI report.
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