The Acting SEC Chair Mark T. Uyeda initiated a thorough evaluation of essential statements that guide cryptocurrency regulation in America.
On Saturday, Executive Order 14192 guides colleagues who need to change or drop crypto-related regulations that serve the agency’s current direction. X The Department of Government Efficiency ordered this evaluation.
The Office engages in an assessment of significant fundamental documents
The analysis considers all main regulatory documents that define crypto market rules. If you want to know if something belongs in the category of financial securities, then use the Howey Test of 2019 along with its official standards. SEC officials now confirm that digital tokens based on jokes and humor do not need to follow securities laws.
The SEC reviewed a 2021 warning that explained the market dangers linked to Bitcoin futures mutual funds. These products feature unacceptable risks of manipulation, liquidity problems, and price volatility. After investors were warned about Bitcoin and Ethereum ETFs, their concerns about this market may need revising.
After monitoring several crypto-related bankruptcies in 2022, the SEC required businesses with cryptocurrency investments to explain clearly how crypto market exposures might influence them, with special attention to custody controls and market liquidity concerns. The SEC evaluates their guidance at present.
Uyeda brought other documents for review in February 2021 and 2020.
The SEC conducts this new evaluation due to extreme staffing difficulties within its organization. Reuters shows that the federal agency lost more than 600 employees, including federal employees. Fewer staff members could slow down their evaluation work without properly completing it.
Potential Market Implications
The review may lead to a new basic approach in how the government regulates the cryptocurrency market. Changes to these statements will determine whether digital assets fall under securities rules and what obligations crypto-related businesses must follow regarding business disclosures, product creation, and digital asset protection.
Market participants closely monitor this review because its possible results could eliminate the rules that slow cryptocurrency progress in U.S. markets. So far, no official date exists for when the SEC will finish its review and propose new regulations.
