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The U.S. Securities and Exchange Commission (SEC) has initiated a review of its previous crypto regulations, signaling a potential shift in oversight strategy. The move is part of a broader policy change aimed at reducing regulatory burdens and promoting economic growth.
The review targets staff-level guidance related to digital assets, including investment products and custody frameworks. This strategic action may lead to simplified compliance structures for cryptocurrency businesses, potentially providing relief from regulatory uncertainty.
In a statement, Acting SEC Chair Mark T. Uyeda emphasized the importance of aligning existing rules with updated agency priorities. The goal is to determine whether certain staff statements require revision or elimination.
The development has significant implications for the crypto industry, which has been grappling with regulatory uncertainty. The shift in strategy may also impact the launch and management of digital asset products in the United States.
Recently, the SEC dropped enforcement actions against major cryptocurrency firms, including Coinbase, Consensys, and Kraken. This new direction suggests that the agency may adopt a more open stance towards the digital asset market.
The review will also cover the agency’s stance on stablecoins. According to recent guidance, assets like Tether (USDT) and Circle USD Coin (USDC), which maintain a 1:1 tie with fiat reserves, are no longer considered securities. This decision is a significant change, as these stablecoins do not require transaction-level reporting to the SEC.
However, algorithmic stablecoins will remain excluded from this classification due to their reliance on code for price stability. Issuers must also separate reserves from operating funds and avoid offering token yields.
The review of crypto regulations marks a significant shift in oversight strategy, aligning with the Trump administration’s deregulatory push. The U.S. government has been working to ease regulatory burdens to promote economic growth.
In conclusion, this development may bring relief to cryptocurrency businesses struggling with regulatory uncertainty.
Source: https://cryptonewsland.com/sec-reviews-crypto-regulations-signals-shift-in-oversight-strategy/
