Crypto News: SEC Commissioner to Resign as Trump, Congress Receive Letter on Crypto Priorities

Crypto news has been up and running since Gary Gensler’s resign came in. SEC Commissioner Jaime Lizárraga, appointed in July 2022, announced his resignation effective January 17. This happened amidst scrutiny for his regulatory approaches that critics claimed stifled innovation and burdened small businesses.

His tenure coincided with significant policy moves, including opposition to approving spot Bitcoin ETFs, aligning with SEC Chair Gary Gensler’s rigorous stance on crypto regulations.

Lizárraga’s career, marked by advocacy for rigorous SEC enforcement to foster market integrity and investor confidence, has been characterized by his work towards ensuring fair market conditions and compliance with securities laws.

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His focus has often been on protecting investor interests, particularly in rulemaking and enforcement, indicating the importance of transparent disclosures and stringent regulatory measures to maintain market stability and investor trust.

His resignation follows Gensler‘s, signaling a notable shift in the SEC’s composition under the incoming administration of President-elect Donald Trump.

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This change points to potentially significant shifts in SEC policies, especially concerning the regulatory landscape of cryptocurrencies and other emerging financial technologies.

The Blockchain Association’s Letter on Crypto Priorities

The Blockchain Association actively engaged with the incoming administration of pro-crypto President-elect Donald Trump and Congress, outlining an agenda to prioritize cryptocurrency in the initial 100 days of office.

They have called for the establishment of a clear regulatory framework to govern cryptocurrency activities, which would include ending the debanking of crypto companies that plagued the sector.

Additionally, there was a push for appointments including a new SEC Chairman who is more favorable to crypto. The same could lead to the revocation of SAB 121, a guideline that affected how banks handled customer’s crypto assets.

Moreover, the association was advocating for the appointment of new leaders at the Treasury Department and the IRS. It could align these agencies more closely with the needs and realities of the digital currency markets.

They also proposed the formation of a dedicated crypto advisory committee that would work alongside Congress and federal regulators. It aims to ensure that U.S. policies support the growth and stability of the crypto market. This crypto news has been a respite for the folks.

This initiative reflected a proactive approach to shaping policy in a way that fostered innovation and growth in the cryptocurrency sector, potentially positioning the U.S. as a global leader in this fast-evolving field.

Crypto news: Verdict on SEC’s ‘Dealer Rule’

Meanwhile, The United States District Court for the Northern District of Texas ruled in favor of the Crypto Freedom Alliance of Texas against the Securities and Exchange Commission (SEC).

The court found that the SEC’s broad application of its dealer rule exceeded its statutory authority under the Exchange Act.

This rule controversially classified frequent traders as dealers, which the Alliance argued wrongly expanded the definition.

The court’s ruling emphasized that significant trading activity alone does not constitute operating “as a regular business” of buying and selling securities.

The court concluded that the SEC’s rule failed to adhere to these criteria, leading to its vacatur.

This victory marks a significant setback for the SEC, particularly under the scrutiny of the cryptocurrency community. Communities have long criticized the commission for regulatory overreach that they argue stifles innovation and burdens small businesses.

This decision was a triumph for the crypto industry. It reinforces the legal boundaries of regulatory agencies. It also ensures that trading activities within the sector are not unduly restricted.