Acting Chairman of the U.S. Securities and Exchange Commission (SEC) Mark Uyeda announced a review of several public statements and recommendations regarding crypto assets. In some cases, these documents may be rescinded.
This is reported by Business • Media
The regulator will pay particular attention to the method of classifying crypto assets as securities, based on the so-called Howey Test. This decision was made possible by an executive order from U.S. President Donald Trump calling for deregulation of the economy.
Reasons for the Review
Mark Uyeda cited Presidential Executive Order 14192, “Unleashing Prosperity Through Deregulation,” and recommendations from the Department of Government Efficiency (DOGE) as the main reasons for this review. In particular, it concerns the guidance related to crypto asset analytics since its publication in 2019, with further updates expected in 2024.
Impact on the Investment Market
It is worth noting that the SEC has repeatedly referenced these guidelines in legal cases, defining crypto assets as investment contracts. Additionally, the changes will affect various Commission documents, including:
- A letter regarding risk disclosure published in December 2022 in connection with the collapse of the FTX exchange;
- A warning about the risks of investing in mutual funds that invest in futures Bitcoin ETFs, issued in May 2021;
- A statement on significant risks of investing in crypto assets, published in February 2021;
- A request for public comments following the decision by the state of Wyoming regarding the potential for public trust companies to act as cryptocurrency custodians, dated May 2, 2024.
It is important to remember that even before the elections, Donald Trump promised to deregulate the cryptocurrency sector by rescinding or revising directives he deemed ineffective. After his election, significant changes were noted in the SEC’s activities, which rolled back several legal cases and created a working group on crypto assets.
“Statement from Acting Chairman Mark Uyeda: Pursuant to Executive Order 14192, Unleashing Prosperity Through Deregulation, together with recommendations from DOGE, I have requested Securities and Exchange Commission staff promptly to review the following staff statements.”