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SEC to Review Crypto Policies Following Executive Order 14192
The U.S. Securities and Exchange Commission (SEC) has been directed by Acting Chairman Mark Uyeda to review its existing crypto-related regulations in accordance with the recent Executive Order 14192, “Unleashing Prosperity Through Deregulation,” issued by President Trump.
This move aims to streamline regulatory frameworks by reducing excessive bureaucratic barriers, a policy often referred to as the “10-for-1” rule-cutting approach. As part of this endeavor, the agency will reassess its stance on cryptocurrency regulation after continuous discussions regarding its approach.
In the coming weeks, the SEC staff plans to evaluate the 2019 Framework for Investment Contract Analysis of Digital Assets. This framework was initially based on Hinman’s 2018 speech, which emphasized that decentralized tokens might lack essential characteristics necessary to be classified as securities.
Furthermore, the review will target a range of crypto-related letters issued by the agency since its inception. These include guidance on asset disclosures, custody standards, and Bitcoin futures. Notably, the SEC will scrutinize a no-action letter related to custodians based in Wyoming.
Stablecoins: A New Perspective
In an unexpected move, the SEC has declared that “covered” stablecoins, like USDT and USDC, are not considered securities. This clarification excludes algorithmic stablecoins from this classification.
However, issuers of these covered stablecoins must refrain from mixing reserves with operational funds or providing yield to investors.
The decision is part of a broader effort to enhance cryptocurrency regulation by removing outdated policies and streamlining regulatory frameworks.
About the author
Wesley Munene
Source: https://cryptonewsland.com/sec-to-review-crypto-policies-following-executive-order-14192/
