The U.S. Securities and Exchange Commission (SEC) is reconsidering its regulatory stance on cryptocurrencies, shifting away from its reliance on enforcement actions. Commissioner Hester Peirce confirmed that the agency is reassessing past legal actions against crypto firms and exploring alternative regulatory approaches.
SEC’s Changing Approach to Crypto Lawsuits
In a recent discussion, Peirce acknowledged that enforcement had played a dominant role in shaping crypto regulations but described this as an unusual practice. “During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical,” she said. She noted that the agency is now seeking to employ other regulatory mechanisms to define clear policies for the industry.
A key indication of this shift is the agency’s move to delay ongoing legal proceedings, including its high-profile lawsuit against Binance. The agency, Binance, and its co-founder Changpeng Zhao have jointly requested a 60-day stay in the case. The SEC stated that the newly established crypto-focused task force could influence the outcome, necessitating a pause in litigation.
This task force, spearheaded by Peirce, is expected to assess the classification of digital assets and clarify the American watchdog’s jurisdiction over the crypto sector. Its role will be instrumental in determining which cryptocurrencies may be classified as securities and how regulatory oversight should be structured.
Impact on SEC Lawsuits Against Crypto Companies
The SEC has taken legal action against multiple cryptocurrency firms, including Coinbase and Binance, alleging violations of securities laws and failure to register properly. While Peirce did not indicate whether any lawsuits would be dropped, she stressed that each case would be assessed independently. “It’s facts and circumstances,” she stated. “We’ll have to look at each case on its merits as we go forward.”
Legal proceedings involving other firms are also facing delays. In a separate case with Lejilex, the SEC and the company have mutually agreed to push back oral arguments initially set for February 20. This postponement extends the timeline for resolution until at least April 11, 2025.
Latest Shifts in Federal Crypto Policy
The SEC’s reconsideration of crypto regulations comes amid broader policy changes under the Trump administration. Shortly after assuming office, President Donald Trump issued an executive order forming a group to provide guidance on cryptocurrency regulation. Additionally, discussions have emerged regarding the potential creation of a national crypto stockpile, which could impact the industry’s future.
Peirce, widely recognized in the digital asset community for her pro-crypto stance, has been a vocal critic of the regulator’s enforcement-driven regulatory framework. She has previously advocated for the approval of Bitcoin exchange-traded funds (ETFs) and opposed regulatory actions targeting crypto firms. Her industry support has earned her the moniker “Crypto Mom” among digital asset advocates.
Also Read: Lejilex, SEC Seek Delay in Texas Court Case Over Crypto Regulation
Source: https://www.cryptonewsz.com/sec-rethinks-crypto-crackdown-as-hester-peirce-pushes-for-clear-rules/