Author: Azuma, Odaily
In the early hours of January 21, the U.S. Securities and Exchange Commission (SEC) officially issued a statement announcing that today will be the last day of Gary Gensler's tenure as SEC Chairman. This SEC chief, who has been embroiled in countless conflicts with the cryptocurrency industry over the past three-plus years, is finally bidding farewell.
Shortly afterwards, the White House released another document, announcing that current SEC Commissioner Mark Uyeda will serve as the acting SEC Chairman, and he will temporarily lead this crucial regulatory agency for the industry until the new SEC Chairman (expected to be Paul Atkins) is confirmed and takes office.
Uyeda is a Republican member, and he has been serving as an SEC Commissioner since June 30, 2022. Prior to becoming an SEC Commissioner, Uyeda had worked at the SEC for over 15 years, with rich frontline experience.
What is his attitude towards cryptocurrencies?
Regarding cryptocurrencies, Uyeda has always been friendly, and he has been seen by the industry as a staunch ally within the SEC, along with "Crypto Mom" Hester Peirce.
Last year, Uyeda also cast a crucial vote in favor of the ETF decision regarding the overall development of the industry.
Although within the SEC, Uyeda does not agree with Gary Gensler's strong enforcement actions against the industry, and he has joined Peirce in opposing multiple enforcement actions taken by the SEC against industry projects.
In an interview with Fox Business in October last year, Uyeda said that Trump had described the SEC's past actions as a "war on cryptocurrencies" and that this situation must be ended and clearer regulatory guidelines must be formulated.
I believe that our policies and practices over the past few years have really been a disaster for the entire cryptocurrency industry. We have been pursuing a 'forced enforcement policy' and have not done anything to provide guidance.
Last week, Reuters reported that multiple informed sources revealed that the Republican leadership of the SEC is preparing to immediately begin reforming the agency's cryptocurrency policy after Trump takes office. Measures being considered by Uyeda and Peirce include initiating relevant procedures to ultimately issue guidance or rules clarifying under what circumstances the agency will view cryptocurrencies as securities, and reviewing some cryptocurrency enforcement cases currently in court.
SEC Succession Matters
It should be emphasized that Uyeda is only the acting SEC Chairman. Trump has nominated former SEC Commissioner Paul Atkins to officially take over the agency, but it is currently unclear when Atkins' appointment will be approved, but it is expected that Uyeda will still serve as the interim head of the agency and make some substantive policy changes before Atkins takes over.
As for the potential change in Atkins' attitude after taking office, there is no need to worry too much. Atkins was a subordinate of Peirce and Uyeda, and although he has made relatively few explicit statements on cryptocurrencies, he has also publicly criticized the SEC's over-regulation of the cryptocurrency industry.
Based on his past experience and potential attitude, Atkins' attitude should also lean towards supporting cryptocurrencies.
CFTC Also Welcomes New Leadership
In addition to the SEC, another core regulatory agency, the Commodity Futures Trading Commission (CFTC), is also undergoing a leadership change. Rostin Behnam has stepped down, and Trump has nominated Caroline Pham to serve as the CFTC's acting Chairman, with the expectation that she will later be appointed as the permanent Chairman.
Similar to Atkins, although Pham has not openly acknowledged support for cryptocurrencies like Uyeda, the market still expects Pham to have a relatively friendly attitude towards the industry.
The Beginning of a Shift in Direction
With Trump's formal inauguration, and the leadership changes at the SEC, CFTC and other core regulatory agencies, the shift in the regulatory direction for cryptocurrencies has already begun.
For the cryptocurrency industry, which has long suffered from regulatory troubles, the next few years may be the most relaxed growth environment in the industry's history - although this "honeymoon period" itself, which is somewhat related to courting voters, is inherently fragile.
Idealistic decentralization advocates may complain that the current state, which depends on the political environment, is far from the original intent when Satoshi Nakamoto wrote the Bitcoin whitepaper, but from a realist perspective, this upcoming regulatory spring may be the best opportunity for all parties in the industry to seek development.
