Regulation
What this means for crypto
Dan Gallagher is the next chairman of the United States Securities and Exchange Commission (SEC), to be elected by Donald Trump. The agency’s former commission welcomed his nomination.
There is a shared feeling that with a Republican in power, crypto would benefit from a more favorable regulatory environment, with key members of the committee denouncing problematic laws.
Cryptocurrency Investors Want Dan Gallagher for SEC Chairman
Gallagher served as SEC commissioner during former U.S. President Barack Obama’s tenure. Welcoming his appointment, Gallagher said he would promote market access while ensuring the U.S. remains at the forefront of financial innovation.
Prior to this appointment, Hester Pierce, aka Crypto Momwas the likely successor if a Republican administration took office. His name had been mentioned several times before the Bitcoin Spot ETF Approval.
In September, John Reed Stark, former head of the SEC’s Internet bureau, put Pierce’s name forward. Her long history of dissent and opposition to most of the SEC’s cryptocurrency-related actions made her an ideal candidate.
“If a Republican is elected chairman, Chairman Gensler will likely resign and the Republican SEC commissioner (in this case, the famous “crypto-mom” Hester Peirce) will possibly become acting chairman,” Reed Stark said. explain.
Learn more: Cryptocurrency Regulation: What Are the Pros and Cons?
It should be noted that no more than three out of five commissioners can belong to the same political party. This is to avoid partisan conflicts within the SEC. The chairman designates one of the commissioners as the agency’s top officer when the current chairman resigns.
Popular belief is that a Republican The SEC taking office after the November election would bode well for cryptocurrency. In particular, the SEC’s cryptocurrency enforcement efforts are expected to be significantly scaled back, potentially focusing on fraud cases. This is in contrast to accusations of pure registration violations, such as cryptocurrency trading platforms failing to register as an exchange, broker-dealer, and clearing corporation.
Another possible expectation is that the agency will be more open to taking significant regulatory steps toward cryptocurrencies, such as approving more spot ETFs to give investors exposure to more financial instruments.
Under the presidency Joe The Biden administration and the current US SEC are reportedly biased against cryptocurrencies, with Democrats in the majority. Besides Pierce, Commissioner Mark Uyeda is the only other Republican on the SEC.
Mark Uyeda Exposes US SEC’s Problematic Rules
Like Pierce, Commissioner Uyeda also sided with the industrycriticizing the SEC’s approach to cryptocurrency disclosure rules as “problematic.” He says Form S-1 filings need to be updated because they don’t facilitate capital formation or protect investors in their current state.
“The Commission should take steps to ensure that the registration statement is material and informative to potential purchasers. Similarly, the Commission should avoid requiring disclosures that are irrelevant and distract readers from important information,” Uyeda said. wrote.
The criticism comes after the financial regulator Ethereum ETF S-1 Forms Returned to Issuerscalling for changes and asking them to refile by July 8. The move suggests at least another round of filings before Ethereum spot ETFs can launch. Head of Government Affairs at Paradigm Alexander Grieve congratulated Commissioner Uyeda, stressing the importance of his statement.
“This is the first time, to my knowledge, that Uyeda has called for a tailored disclosure regime for crypto assets. The SEC under a different administration would be a very different place,” Grieve said. REMARK.
While the Market predicts ETH ETFs to start trading on July 4The timeline depends on how quickly the SEC can review and respond to issuers’ filings.
Learn more: How to invest in Ethereum ETFs?
Meanwhile, the SEC continues to crack down on cryptocurrency businesses. In a post published on X, Binance.US highlighted a protracted legal battle with the regulator. The trading platform expressed its commitment to compliance and criticized the agency’s enforcement tactics.
“On Friday, the Court ruled that the SEC’s case against Binance.US will proceed. We have been prepared for this and look forward to this case moving forward through the judicial process,” the statement read. announcement.
THE The case involves violations of securities lawoffering unregistered investment products and violating anti-fraud laws. As it prepares for the showdown, Binance.US criticized the “regulation by law enforcement”, accusing SEC Chairman Gary Gensler of being politically motivated.
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