Trump's Crypto Makeover: Uyeda Takes the Helm at SEC

Mark Uyeda, a Republican SEC commissioner, has been appointed as acting chair by President Donald Trump, signaling a potential shift in the agency's stance on crypto regulation. Uyeda, who joined the SEC in June 2022, has been vocal in his criticism of the agency's crypto approach under former Chair Gary Gensler, calling it "poorly conceived" and advocating for more clarity in how crypto is regulated. With Uyeda and fellow Republican SEC Commissioner Hester Peirce planning a crypto policy overhaul this week, investors can expect a more business-friendly approach to crypto regulation, focusing on fostering innovation while safeguarding investor interests.



Uyeda's appointment comes as the SEC is set to have a regulatory shift for crypto following Gensler's exit and the agency's Republican majority. Both Uyeda and Peirce are weighing whether to start a process that could lead to more clarity on how the SEC views crypto and could decide to review pending enforcement cases, which could all begin very soon. This initiative may include reviewing contested policies such as crypto accounting guidance that drew congressional criticism last year.

However, the regulatory process may face hurdles due to the current SEC structure, with three commissioners—Uyeda, Peirce, and Democrat Caroline Crenshaw. Under SEC quorum rules, rulemaking requires unanimous approval, giving Crenshaw effective veto power over new proposals. Crenshaw, who has been firmly against crypto, opposed the approval of spot Bitcoin exchange-traded funds (ETFs), which are becoming a significant asset class on Wall Street. Her opposition could slow down or even block certain regulatory changes, as the SEC operates with a three-commissioner structure, and rulemaking requires unanimous approval.



Despite potential challenges, investors can expect several specific changes from Uyeda and Peirce's crypto policy overhaul. These changes could include clarifying crypto registration guidelines, reviewing pending enforcement cases, revisiting crypto accounting guidance, and fostering innovation while maintaining investor protection. With a Republican majority at the SEC, investors can expect a more business-friendly approach to market oversight, with a focus on fostering innovation and growth while maintaining investor protection.

In conclusion, Trump's appointment of Mark Uyeda as acting SEC chair signals a potential shift in the agency's stance on crypto regulation. With Uyeda and Peirce planning a crypto policy overhaul, investors can expect a more business-friendly approach to crypto regulation, focusing on fostering innovation while safeguarding investor interests. However, the regulatory process may face hurdles due to the current SEC structure and the opposition of Democrat Commissioner Caroline Crenshaw. As the crypto market continues to evolve, investors should stay informed about the regulatory landscape and adapt their strategies accordingly.