The SEC’s new direction under the U.S. President’s leadership: toward a more favorable future for the crypto world?
Following Gary Gensler’s resignation and the appointment of Mark Uyeda as interim SEC Chair until June 5, 2026, the agency has entered a new phase in digital asset regulation. After taking office, President Donald Trump fulfilled his dual campaign promises: granting clemency to Ross Ulbricht, founder of Silk Road, and overhauling the SEC’s leadership with figures more favorable to the cryptocurrency sector. As pledged during his campaign, Trump’s new approach aims to ease restrictions to foster innovation in crypto. The anticipated appointment of Paul Atkins (a former SEC commissioner under George W. Bush) as permanent SEC Chair in June 2026, along with the launch of a crypto task force led by Commissioner Hester Peirce, marks a clear departure from the Gensler era, which saw over 1,300 enforcement actions between 2021 and 2024.
However, the outcomes and impact of these regulatory shifts remain to be seen. For now, let’s examine the current state of digital asset regulations in the U.S.
The current regulatory framework
- Classification of digital assets
To date, the SEC has relied on the Howey Test to determine whether a digital asset qualifies as a security. Under this test, an asset is classified as a security if it meets four criteria:
- involves an investment of money;
- is tied to a common enterprise;
- generates an expectation of profits;
- profits derive from the efforts of third parties.
In recent years, the SEC has actively applied securities laws, classifying numerous digital assets as securities when they met the Howey Test criteria. This approach has led to enforcement actions against exchanges and companies accused of operating without proper SEC registration.
Critics argue that applying this 1946-era test to cryptocurrencies is outdated. Under this framework, Bitcoin remains the only cryptocurrency not classified as a security. Former SEC Chair Gensler repeatedly stated that Bitcoin resembles a commodity more closely.
In 2018, former SEC official William Hinman suggested that Ethereum, if sufficiently decentralized, might not qualify as a security. Recent rulings, such as the SEC vs. Ripple Labs case (2023), further complicated matters: the New York District Court ruled that only institutional sales of XRP constituted securities transactions, while retail sales did not—highlighting the Howey Test’s inadequacy in addressing complex scenarios.
- Exchange regulation
Platforms handling tokens classified as securities must register with the SEC as exchanges/brokers (via Form S-1) and implement custody systems compliant with Rule 15c3-3 to protect investor assets. This led to lawsuits against Coinbase (2023) and Kraken (2024) for offering unregistered staking services.
However, eight U.S. states, including California and New York, have challenged federal guidelines by enforcing stricter local regulations. This regulatory fragmentation complicates operations for companies working across multiple states. - Mining landscape
Miners face no specific registration requirements, as their activities are deemed primarily technological rather than financial. This approach allows the mining sector to grow under reasonable oversight without excessive regulatory burdens.
In 2024, however, the Environmental Protection Agency (EPA) and Department of Energy (DOE) proposed energy efficiency standards for Bitcoin mining farms, attempting to impose indirect regulation.
- Investor protection and compliance
Entities handling digital assets must maintain detailed transaction records, implement robust internal controls, and transparently communicate risks. They must also adhere to:
- AML/KYC (with a $10,000 reporting threshold);
- Travel Rule (data sharing for transactions over $3,000);
- IRS tax reporting.
In 2023, SEC fines for non-compliance exceeded $5.8 billion, including high-profile cases like the FTX collapse.
The new specialized task force
Led by Republican Commissioner Hester Peirce, the SEC’s new crypto task force aims to redefine the agency’s regulatory approach by prioritizing transparency and collaboration over punitive measures.
Key objectives include:
- Clarity on registrations: streamlining pathways for exchange and token registration, moving away from Gensler’s “experimental legal interpretations”;
- Coordination with the CFTC: clarifying SEC/CFTC jurisdiction (securities vs. commodities) to avoid overlaps;
- Targeted enforcement: focusing on systemic fraud rather than broad punitive actions.
The task force also plans public consultations and roundtables with industry stakeholders, signaling a collaborative approach to foster innovation and reduce regulatory uncertainty.
