- SEC reviews past crypto guidelines to align with updated agency priorities and simplify digital asset oversight.
- Stablecoins like USDT and USDC are not securities under new SEC guidance based on fiat backing rules.
- Recent dropped cases show SEC may reduce pressure on crypto firms under the new deregulatory order.
The U.S. Securities and Exchange Commission is reviewing several prior staff statements related to cryptocurrency regulations. Acting Chair Mark T. Uyeda directed this review following Executive Order 14192, issued by President Donald Trump on January 31.
The executive order focuses on reducing unnecessary rules that may hinder innovation or economic activity. It introduces a “10-for-1” rule that requires agencies to eliminate ten regulations for every new one introduced. The policy replaces the previous “2-for-1” regulatory model from Trump’s first term.
The SEC’s review targets documents connected to crypto investment products and digital asset securities. It includes its statement on Bitcoin futures under the Investment Company Act and frameworks for digital asset custody. The goal is to assess whether these rules remain relevant to the agency’s current direction.
The Department of Government Efficiency (DOGE) advised on the order. Following this, the SEC initiated the review to align with updated agency priorities. Uyeda stated the review aims to determine if certain staff statements require revision or removal.
Dropped Enforcement Actions Point to New Direction
This strategic action indicates that the SEC might adopt different standards when dealing with crypto businesses. The SEC has withdrawn multiple enforcement measures targeting major cryptocurrency companies. The SEC withdrew legal actions against Coinbase, Consensys and Kraken.
The SEC’s actions suggest a more open stance toward the digital asset market. This change may provide breathing room for firms that have faced regulatory uncertainty in the past. The outcome of the current review may lead to simpler compliance structures for crypto businesses.
SEC Clarifies Stablecoin Status
Besides enforcement changes, the SEC has clarified its stance on stablecoins. The agency declared stablecoins which maintain a 1:1 tie to fiat reserves to be outside the definition of securities during an announcement on April 4. The agency considers stablecoins USDT from Tether and USDC from Circle as non-securities because they both align with the U.S. dollar value at a 1:1 ratio.
These stablecoins do not require transaction-level reporting to the SEC. However, algorithmic stablecoins remain excluded from this classification due to their reliance on code for price stability. Covered issuers must also separate reserves from operating funds and avoid offering token yields.
Regulatory Rollback May Reshape Crypto Oversight
The reviewed materials are staff-level guidance, which carries less authority than official Commission rules. However, the SEC’s action reflects a wider deregulatory push under the Trump administration’s second term.
Agencies are expected to support economic growth by reducing regulatory burdens. The SEC’s approach may result in clearer or more flexible rules for crypto firms. It may also reduce compliance requirements for digital asset managers and custodians.
The crypto industry continues to monitor these developments closely. Changes in SEC guidance could reshape how companies launch and manage digital asset products in the U.S.
