- The US SEC formally dropped multiple regulatory policies from the previous administration.
- Former chairman Gary Gensler’s “regulation by enforcement” approach is no longer active in the US.
President Donald Trump has brought a historical shift to the crypto industry. From encouraging the crypto space to thrive in the country to forming regulatory frameworks, the Trump administration is expediting crypto adoption and innovation. Regulating the crypto space with favorable policies means taking a different approach from the previous government.
As per the latest reports, the current US SEC administration proposed amendments to Exchange Act Rule 3b-16. It was issued in April 2023, when the US SEC was under the control of former chairman Gary Gensler. The proposed changes are going to bring new definitions to the term “exchange,” so that DEX platforms will come under the national securities exchanges regulations.
The official announcement from the SEC made it clear that it is going to drop several rules proposed between March 2022 and November 2023. It is not going to include any of these rules moving forward in crypto regulation. The SEC has also stated that it will consider new proposed rules to regulate areas mentioned in the previous rules.
A New Dawn Rises For Crypto in the US
Other withdrawals by the US SEC include cybersecurity risk management and ESG requirements for investment firms. Furthermore, the regulator is also planning to make changes to crypto custody rules.
President Trump has made it clear that he would make the US a crypto capital of the globe. He is already taking several steps towards it by considering a clear regulatory framework for cryptocurrencies. Starting with stablecoin regulations to forming a Presidential Working Group, several measures are underway to encourage crypto in the country.
President Trump and the White House AI & Crypto Czar have multiple times mentioned that stablecoins have the potential to foster traditional finance. Stablecoin-related bills like the STABLE Act and the GENIUS Act are in motion to regulate stablecoins. These bills are setting a precedent for several other countries in considering stablecoin regulations.
However, there seems to be no clear update on establishing a Bitcoin reserve. In the first few days after Trump became President of the US, he proposed forming a Presidential Working Group to evaluate a Strategic Bitcoin Reserve. The idea of Bitcoin reserve has generated a lot of hype in the market at the time.
Establishing a Bitcoin reserve would require funds to buy Bitcoin, which might not be suitable for the US government at present. Since there are no updates on it till now, the administration might have dropped Bitcoin reserve from consideration. Nonetheless, the crypto industry is facing a huge shift in the US.
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