Paul Atkins

Uniswap

Rule

Godzilla

A crypto advocacy group has called for the United States Securities and Exchange Commission to initiate an immediate review of all existing crypto-related investigations, Wells notices and ongoing lawsuits from “day one” of the forthcoming Trump administration.&nbsp;
The Digital Chamber’s Token Alliance, which lists Trump’s nominee for SEC chair, Paul Atkins, as an advisory board member, said the new administration presented an opportunity for the SEC to reset its “historically troubled relationship” with the digital asset industry.&nbsp;
“We need to foster a culture of mutual trust — where the digital asset industry can have confidence in the SEC’s intentions, and the SEC can recognize that most digital asset participants are striving to operate responsibly,” it <a data-ct-non-breakable="null" href="https://digitalchamber.org/starting-the-new-year-right-time-to-reset-the-relationship-between-the-sec-and-the-global-digital-asset-industry-and-build-a-mutual-culture-of-trust/" rel="null" target="null" text="null" title="null">said</a> in a Dec. 18 statement.
The SEC is still engaged in legal battles with industry heavyweights, including Binance, Coinbase, Consensys and Ripple. It has also <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/nft-platform-cyberkongz-hit-wells-notice-sec" rel="null" target="null" text="null" title="null">sent Wells notices</a> to Uniswap and Immutable, which could have major implications for tokens and the industry.&nbsp;
<h2 id="ending-policy-of-regulation-by-enforcement">Ending “policy” of regulation by enforcement</h2>
The recommendation to review all existing investigations forms just one part of a long list of proposed priorities for the SEC during the first 90 days of the new administration.&nbsp;
It also calls for the SEC to seek stays for ongoing litigation cases that don’t involve fraud, investor loss or risk of imminent harm, allowing time to finalize the regulator’s approach.&nbsp;
Another priority for the SEC would be to rescind the 2019 framework on how the Howey test’s investment contract argument applies to digital assets and to declare that it no longer refers to the Hinman speech to conduct such analyses.
The speech, by William Hinman, former SEC director in the division of corporate finance, has improperly created a winner and loser dynamic, The Digital Chamber said.
<figure>
 <img alt="SEC, Gary Gensler" src="https://s3.cointelegraph.com/uploads/2024-12/0193dd63-2e95-71a3-8bad-787f94fa1986" title="">
 <figcaption style="text-align: center;">
 The Digital Chamber’s crypto agenda for an Atkins-led SEC to follow from “day one” of the Trump administration. Source: The Digital Chamber
 </figcaption>
</figure>
The Digital Chamber also wants the SEC’s Staff Accounting Bulletin 121 (SAB 121) rule to be rescinded.
SAB 121 requires SEC-reporting entities that<a data-ct-non-breakable="null" href="https://cointelegraph.com/innovation-circle/understanding-crypto-custody-what-different-solutions-entail-for-investors-and-businesses" rel="null" target="null" text="null" title="null"> custody cryptocurrencies</a> to record those holdings as liabilities on their balance sheets. 
The Digital Chamber said the rule was burdensome on market participants, while House Representative Wiley Nickel has said that it may push <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-custody-rule-made-crypto-regulation-political-wiley-nickel" rel="null" target="null" text="null" title="null">US investors offshore</a> to “riskier” custodial solutions.
An SAB 121 repeal bill received bipartisan support in the House and Senate before being <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/united-states-president-joe-biden-veto-sab-121-crypto-accounting-rule" rel="null" target="null" text="null" title="null">vetoed by President Joe Biden.</a>
The new SEC may also consider whether it should withdraw from proposed Rule 3b-16, which would expand the definition of “exchanges” to include decentralized finance protocols, among others.&nbsp;
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/sec-crypto-regulatory-priority" rel="null" target="null" text="null" title="null">SEC lists crypto as an examination priority in 2025</a>
SEC Chair Gary Gensler, viewed as the orchestrator behind the regulation-by-enforcement approach, is set to step down on Jan. 20 and is tipped to be replaced by Atkins, who previously served as an SEC commissioner from 2002 to 2008.
The Digital Chamber’s proposal may hold some weight as Atkins serves on its advisory board and Token Alliance leadership committee members met with SEC commissioners Hester Peirce and Mark Uyeda to present the policy priorities.&nbsp;
Magazine:<a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/godzilla-vs-kong-can-sec-prevail-against-crypto-legal-firepower/" rel="null" target="null" text="null" title="null"> Godzilla vs. Kong: SEC faces fierce battle against crypto’s legal firepower</a>

Advocacy group urges SEC rethink crypto probes and lawsuits from ‘day one’

Table of Contents

Cointelegraph

Other articles published on Dec 19, 2024

Ethereum Poised for 'God Candle' Rally, Floki Eyes Record Highs

Flipster Achieves ISO/IEC Certification

Why Did Fed Chair Powell Reject Bitcoin Reserves?

ADA’s breakout imminent; New altcoin set to outshine XRP’s 2x surge

This Trader Made Over $6 Million by Selling Shiba Inu (SHIB) Holdings: Details

Monero (XMR) Price Approaching Resistance: Is a Major Move Coming?

Join our free newsletter for daily crypto updates!