How Will the SEC Behave Towards Cryptocurrencies During the Trump Era? What Will Be the Status of the Lawsuits?

According to comments from current commission members, the U.S. Securities and Exchange Commission (SEC) may see significant changes in its approach to regulating the cryptocurrency industry as it goes through a leadership transition. Please provide the text to be translated. Due to the departure of SEC Chairman Gary Gensler and the need for the institution to wait for Senate confirmation of President Donald Trump's nominees, SEC will operate with a team of fewer commissioners starting next year. Republican Commissioners Hester Peirce and Mark Uyeda will be the only remaining members during the transition.

Peirce said, “We have a large material package” and added, “We have always opted for sanctions as the tool we prefer in this area. I think when there are new commission changes and the structure of the commission changes, the structure of the cases can also change.”

Uyeda emphasized the importance of transparency and public input in shaping SEC policies. Uyeda highlighted the importance of accountability through public comments on regulations under the Administrative Procedure Act.

Uyeda said, "It is our responsibility to provide this transparency to the American public."

In addition, Uyeda pointed to concerns about guidelines released by SEC staff without public consultation, citing controversial Staff Accounting Bulletin (SAB) 121 as an example. The policy requiring digital asset custodians to report their liabilities and corresponding assets on their balance sheets was overturned by both houses of Congress before being vetoed by President Biden.

"It's hard to prepare for change because we've come a long way," Peirce said, adding: "It's going to take a lot of work for you and us to bounce back, but I think we can do it."

Upcoming leadership changes may indicate a deviation from the SEC's sanction-based approach to crypto regulation.