A prominent crypto advocacy group, the Digital Chamber, is urging the United States Securities and Exchange Commission (SEC) to take immediate action to review all existing crypto-related probes, Wells notices, and lawsuits from the very first day of the upcoming Trump administration.
The Digital Chamber’s Token Alliance, which includes Trump’s nominee for SEC chair, Paul Atkins, on its advisory board, emphasizes the opportunity for a fresh start for the SEC and its relationship with the digital asset industry. The group argues that fostering mutual trust between the SEC and the crypto sector is crucial for the industry’s sustainable growth and regulatory clarity.
Key Points of the Advocacy Group’s Recommendations:
Immediate Review of Existing Investigations: The Digital Chamber insists that all crypto-related investigations and lawsuits, including those involving Binance, Coinbase, Ripple, and Uniswap, be reevaluated to ensure fair and transparent outcomes.
Regulation by Enforcement: The group advocates for a shift away from the SEC’s regulation-by-enforcement approach. They call for a more balanced approach that emphasizes collaboration rather than punitive measures.
Rescinding Burdensome Rules: Among the proposed changes is the rescission of the 2019 Howey test framework and the SEC’s Staff Accounting Bulletin 121 (SAB 121), which burdens crypto custodians by requiring them to record crypto holdings as liabilities.
Policy Priorities for SEC Leadership: The Digital Chamber also suggests that the SEC should consider stays for non-fraud-related litigation and withdraw from proposed Rule 3b-16 to avoid unnecessary regulatory expansion.
The advocacy group’s stance has been bolstered by meetings with SEC commissioners Hester Peirce and Mark Uyeda, where they presented these policy priorities. With Gary Gensler’s departure and Paul Atkins set to replace him, the group sees an opportunity for significant reform in the SEC’s approach to crypto regulation.
