The Anticipated Pro-Crypto Shift at the SEC
As the SEC prepares for Gary Gensler’s departure, the crypto community is eagerly anticipating a pro-crypto transition. The appointment of pro-crypto advocate Paul Atkins by President Trump, alongside the absence of anti-crypto Commissioner Caroline Crenshaw, suggests a significant shift towards a crypto-friendly leadership anticipated to take hold in January.
Insights from Commissioner Hester Peirce
In a recent interview with Coinage, SEC Commissioner Hester Peirce shared valuable insights on the agency’s evolving stance towards cryptocurrencies. Historically known for its anti-crypto position, the SEC now seems to be embracing innovation. Commissioner Peirce described this period as one marked by “transition” and “optimism,” highlighting the hopeful changes on the horizon.
“It’s a time of transition for everyone in Washington right now, and I think that’s the same at the SEC,” Commissioner Peirce remarked. Although uncertainty will linger until the new Chairman assumes office, Peirce is confident about initiating processes that will lead to positive changes.
Revisiting Key Crypto Decisions
Commissioner Peirce is keen on revisiting two pivotal SEC decisions related to crypto ETFs: allowing in-kind redemptions and enabling Ethereum ETFs to stake assets. With the anticipated new administration, the possibility of these changes seems more plausible, particularly following Chair Gensler’s expected departure in January.
In-kind redemptions could streamline the process by reducing unnecessary conversions to cash, thereby enhancing efficiency. Currently, Ethereum ETFs have amassed over $10 billion, while Bitcoin ETFs hold more than $120 billion in assets. Unlike other regions, such as Europe, which permits staking for additional yield, ETF issuers in the U.S. can only hold crypto assets. With a pro-crypto majority, these changes could materialize soon.
“If it changes from a majority of Commissioners who don’t want things to go through to a majority of Commissioners who do want things to go through, then yeah, it’s easier,” said Peirce. With Chair Gensler stepping down on January 20, the path forward for these initiatives is expected to become clearer. “I imagine that that question is going to be posed to us early on,” she added.
The Road to Fairer Crypto Regulations
Commissioner Peirce expressed excitement about the prospect of fairer crypto regulations and the opportunity to collaborate with Paul Atkins again, who previously served as a Commissioner from 2002 to 2008. She envisions a future where by the end of 2025, a well-defined regulatory structure allows individuals to focus on the potential of technology rather than navigating complex regulations.
“I would be happy if at the end of 2025, people get to the point where the regulatory structure is there, they know what the rules are, they’re complying with the rules, but they’re spending their time talking about the technology and its potential. That would make me very happy,” she stated.
The anticipation of these changes signifies a promising era for the cryptocurrency industry, fostering an environment where innovation can thrive under clear and supportive regulations.
