Regulators Flip the Script: Crypto Gets a Seat at Wall Street's Table

The U.S. Securities and Exchange Commission (SEC) is taking a decisive step toward reshaping the regulatory landscape for cryptocurrencies, signaling a significant shift in its approach to digital assets. In late August 2025, the SEC released its rulemaking agenda for the coming months, which includes proposals to revamp crypto regulations and reduce what Wall Street has long criticized as excessive compliance burdens. These changes are expected to facilitate greater integration of digital assets into traditional financial markets, potentially marking a turning point for the crypto industry in the United States [1].

Among the key initiatives outlined by the SEC is the proposal of new rules governing the offer and sale of digital assets. These rules may include exemptions and safe harbors to ease the path for companies issuing tokens, while also clarifying how existing broker-dealer regulations apply to cryptocurrency transactions. The agency also plans to consider amending its rules to permit the trading of crypto assets on national securities exchanges and alternative trading systems, a move that would align the treatment of digital assets with traditional securities and boost their legitimacy in the eyes of institutional investors [1].

The announcement reflects the broader pro-crypto stance of the current administration under President Donald Trump. This marks a sharp departure from the enforcement-heavy approach of the previous administration, which saw the SEC file numerous lawsuits against major exchanges such as Coinbase and Binance. In contrast, the Trump-era SEC has taken a more accommodating posture, recently approving spot Bitcoin and Ethereum trading on major exchanges like the New York Stock Exchange and NASDAQ. These approvals, combined with the new rulemaking agenda, indicate a regulatory environment that is more supportive of innovation and market efficiency [2].

The changes also come in the context of broader legislative efforts to establish a comprehensive regulatory framework for digital assets. In July 2025, Congress passed the GENIUS Act, which introduced clear rules for stablecoin issuance, including requirements for full reserve backing, monthly audits, and anti–money laundering compliance. Additionally, the CLARITY Act, which has passed the House and is pending in the Senate, aims to reduce regulatory overlap by defining how digital assets are treated under federal securities and commodities laws [3]. These legislative developments help clarify the roles of agencies such as the SEC, CFTC, and IRS, ensuring a more coordinated approach to crypto oversight.

The evolving regulatory environment is not limited to the U.S. jurisdiction. Globally, countries have adopted diverse approaches to crypto regulation, ranging from supportive frameworks in Switzerland and Singapore to restrictive measures in China. The U.S. approach, with its focus on balancing innovation with investor protection, is positioning itself as a key player in the global crypto ecosystem. However, as the regulatory landscape matures, challenges remain, including the potential for increased costs of compliance, the risk of stifling innovation, and the complexity of cross-border enforcement [3].

As the SEC moves forward with its agenda, the crypto industry is likely to benefit from greater clarity and fewer legal uncertainties. By streamlining regulations and fostering a more accommodating environment, the agency is helping to lay the groundwork for a more robust and integrated digital asset market. The coming months will be critical in determining how these proposals are received by market participants and whether they will ultimately lead to a more stable and transparent crypto ecosystem.

Source:

[1] US SEC unveils agenda to revamp crypto policies, ease ... (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/)

[2] SEC Unveils New Rulemaking Plan to Reform Crypto ... (https://watcher.guru/news/sec-unveils-new-rulemaking-plan-to-reform-crypto-regulation)

[3] Cryptocurrency Regulation: A Guide to U.S. & Global Policies (https://www.britannica.com/money/cryptocurrency-regulation)