SEC's Crypto Agenda on Hold: Chair Confirmation Awaited

The U.S. Securities and Exchange Commission (SEC) is awaiting the confirmation of a chair before setting a regulatory agenda for the cryptocurrency industry, according to Hester Peirce, the head of the SEC's Crypto Task Force. Speaking at a virtual panel hosted by the Federalist Society on February 11, Commissioner Peirce indicated that it would be premature for the agency to establish a regulatory roadmap for digital assets without a Senate-confirmed chair at the helm.

Mark Uyeda, the acting chair of the SEC, has been leading the agency since the departure of Gary Gensler on January 20. However, the Senate is expected to vote soon on President Donald Trump's nomination of former SEC Commissioner Paul Atkins to fill the position permanently. Peirce praised Uyeda's leadership, stating that the acting chair has been doing an excellent job and that the agency's agenda has continued to progress. Nevertheless, she acknowledged that once Atkins is confirmed, he would likely want to set his own agenda for the agency.

On January 28, Trump nominated Atkins to serve as an SEC commissioner for a term ending in June 2031. As of February 11, the Senate Banking Committee had not yet considered his nomination, which would require a majority of senators present to move Trump's pick to the chamber for a full floor vote.

Peirce also mentioned that the SEC is still trying to determine the best path forward for rulemaking on digital assets. In January, an appellate court issued a ruling that agreed with Coinbase's position that the SEC's decision to deny a rulemaking request was arbitrary and capricious. Following the formation of the SEC's Crypto Task Force, the commission requested delays for at least two of its previously filed enforcement actions in different jurisdictions, suggesting that the agency's work in developing a regulatory framework could impact its position in these cases.

An Illinois judge granted the SEC's request for a 30-day extension in a crypto case against Cumberland DRW. However, a District of Columbia court had not responded to a similar request in the commission's case against Binance at the time of publication. Peirce and Uyeda, both Republicans, currently serve on the SEC alongside Democratic Commissioner Caroline Crenshaw. It remains unclear whether Trump intends to nominate a fifth commissioner to fill the leadership at the financial regulator should Atkins be confirmed.