- Acting SEC Chairman Mark Uyeda has requested SEC staff to review a number of frameworks and statements relating to crypto.
- This is occurring in part due to the recommendations of the Department of Government Efficiency (DOGE) and Executive Order 14192 ‘Unleashing Prosperity Through Deregulation’.
- This has several practical implications for the crypto industry, including the application of the Howey Test and regulatory warning requirements relating to cryptocurrencies.
- This review of changes is expected to provide the groundwork for a more friendly regulatory environment towards digital assets.
On Saturday the 5th of April 2025, Mark Uyeda, Acting Chairman of the Securities and Exchange Commission (SEC), made a statement directing SEC staff to review a number of statements, many of which related to the crypto industry.
The SEC mentioned that the purpose of the review was to identify staff statements that should be modified or rescinded to be consistent with current agency priorities.
Many SEC-issued statements relating to cryptocurrencies in recent years were made under the previous US administration, which was perceived as highly against the digital assets industry. This contrasts with the current US administration’s stance on digital assets, which appears to be one of embracing blockchain innovation.
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What Are the Focus Points of These Statement Reviews?
A contentious issue during the previous administration was what type of asset can be defined as a security, with the interpretation of the Howey test being a core part of this ‘debate’.
The Howey test was established by the US Supreme Court’s 1946 ruling as a legal framework for determining an investment contract and therefore what is a security.
With a review of the latest statements, the SEC likely aims to clear up any such contention and to provide a more consistent series of statements regarding the determination of what is classified as a security.
Furthermore, the SEC’s review of statements also includes guidance issued by the SEC in 2022 following numerous cryptocurrency bankruptcies. Companies with exposure to the crypto markets were recommended by the SEC to disclose any potential impacts this could hold to investors.
This review potentially signals a less risky perception of digital assets, at least in comparison to the stance taken in more recent years by the SEC.
Another point for review is a previous 2021 SEC statement which strongly advised investors to exercise caution when investing in funds which held exposure to the Bitcoin futures market.
The Bottom Line
This series of statement reviews by the SEC essentially aims to repeal or modify previous statements made by the SEC under the Biden administration. These previous statements often aimed to or were perceived as undermining or attacking the crypto industry.
This review of statements is part of a larger movement by the current US administration to herald in a friendlier regulatory environment towards digital assets.
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