SEC Reconsiders Crypto Regulations Amid Push for Modernization
The US Securities and Exchange Commission (SEC) is planning to reassess several internal policies related to crypto regulation, aiming to ensure that its guidelines are aligned with current priorities.
This move is part of a broader deregulation push from President Donald Trump, influenced by guidance from the Department of Government Efficiency (DOGE) led by Elon Musk.
Acting SEC Chair Mark Uyeda recently stated that the commission would evaluate existing directives to determine whether they should be updated or withdrawn. A key focus will be the framework for classifying digital assets as securities, currently based on the long-standing Howey Test.
This test, often seen as outdated, has been used to decide whether cryptocurrencies qualify as securities, including in cases like Ripple’s XRP.
Former SEC official Bill Hinman’s 2018 viewpoint, suggesting that a token’s decentralization should take precedence over its initial sale, will also be scrutinized.
Some in the crypto community, including analyst Jesus Martinez, believe that revising or removing the Howey-based criteria could greatly benefit retail investors, enabling broader participation in blockchain projects currently restricted to institutional players.
Besides the Howey Test, the SEC will examine other guidelines, including a bulletin on mutual funds investing in Bitcoin futures and a risk alert addressing cybersecurity and regulatory risks associated with digital assets. The agency is also reviewing policies regarding whether state-chartered banks and trust companies can act as qualified custodians under the SEC’s Custody Rule.
Many in the crypto space see this review as a sign of a more adaptive and modern approach to regulation, which could have significant implications for both retail and institutional market participants.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
