Trump Restructures SEC with Focus on Cryptocurrency Market Reforms

• Trump revamps SEC for crypto-friendly regulations.
• New leadership will review lawsuits and token classification.
• Bitcoin hits $100K amid bullish market expectations.

With Donald Trump inaugurated as President of the United States, the Securities and Exchange Commission (SEC) is preparing significant changes to its policies regarding cryptocurrencies. Under the new Republican leadership, the focus is expected to be on creating a clearer and more favorable regulatory environment for the crypto market, changing the approach rigid of the previous management.

Commissioners Hester Peirce and Mark Uyeda, known for their pro-crypto views, are expected to lead the reform effort, prioritizing reviewing ongoing court cases and clarifying when a digital token should be classified as a security. According to sources close to the SEC, the agency intends to pause or even terminate legal actions that do not involve allegations of fraud, marking a strategic shift from the previous administration of Gary Gensler.

Paul Atkins, Trump’s nominee to become SEC chairman, is a well-known crypto advocate. A former SEC commissioner, Atkins is expected to loosen rules imposed by Gensler, who has led 83 crypto-related lawsuits, including investigations into companies like Coinbase and Kraken. During Gensler’s tenure, the SEC argued that many digital tokens should be treated as securities, imposing strict regulations. That stance has drawn criticism from the industry, which is calling for clearer rules tailored to the nature of crypto assets.

The Trump administration has signaled its intention to create a more collaborative environment with the industry, promising executive orders to reevaluate existing regulations and encourage innovation. Among the expected changes is the repeal of accounting guidelines that limit the ability of public companies to hold cryptocurrencies for their customers. This represents a relief for financial institutions looking to participate more actively in the market.

Despite the optimism, legal experts point to challenges. Amending or closing lawsuits can face resistance in the courts. Philip Moustakis, a lawyer specializing in the field, said: “Amending cases that have already been settled can be a difficult and controversial process.” However, the new leadership appears willing to address these barriers in the name of more modern and efficient regulation.

Bitcoin recently surpassed the $100 mark, driven by expectations of a more friendly regulatory environment. The market is closely monitoring the SEC’s next steps, while investors and companies await rules that can provide legal certainty and foster growth in the sector.

With the new government, the cryptocurrency market in the US is at a decisive moment, marked by the promise of a more promising future and aligned with the interests of investors and developers of decentralized technologies.