Major Overhaul at the SEC: Can the New Leadership Bring a Fresh Perspective to the Encryption Industry?

In the first half of 2025, the U.S. Securities and Exchange Commission (SEC) underwent an unprecedented internal transformation. From top leadership to core departments, the personnel structure of the SEC has undergone a dramatic change. This transformation involves not only the departure of more than 500 employees but also the replacement of several key executives and the reorganization of departments. These changes will undoubtedly have a profound impact on the regulatory landscape of the encryption market.

Chairmanship Transition: Shift in Regulatory Attitude

The SEC has experienced the turnover of three chairpersons in just six months: Gary Gensler during the Biden administration, acting chair Mark T. Uyeda, and current chair Paul Atkins. Unlike Gensler's tough stance, Uyeda and Atkins are seen as having a more open attitude towards the encryption industry.

During his brief tenure as an agent, Uyeda quickly implemented the new government's pro-encryption commitments. He established a dedicated cryptocurrency task force, revoked the controversial SAB 121 accounting policy, and set up a new unit for networks and emerging technologies.

Paul Atkins, who took office in April, is a familiar face in the encryption circle. He previously served as co-chair of the Digital Chamber's Token Alliance, actively promoting the establishment of industry standards for token issuance and trading. Reports indicate that Atkins himself holds approximately $6 million in encryption-related assets. After taking office, he has repeatedly stated his intention to "return to the fundamental mission of promoting rather than suppressing innovation."

core department personnel adjustments

In addition to the chairman, several key departments of the SEC have also welcomed new leadership. Among them, the new heads of the Investment Management Division and the Trading and Markets Division are considered to have experience in the encryption industry.

The new director of the Investment Management Department, Brian T. Daly, was previously a partner at an international law firm, specializing in areas including digital assets, encryption, and blockchain. The new director of the Trading and Markets Department, Jamie Selway, served as the global head of institutional markets at a cryptocurrency company.

These two departments are extremely important in the SEC framework, responsible for regulating investment products and services, as well as the operational rules of market infrastructure. The addition of new leadership may bring new changes to encryption ETFs and the trading environment.

At the same time, the SEC's enforcement division has also undergone a reshuffle. After the new acting director took office, the enforcement力度 has noticeably eased. Between February and March of this year, the SEC dropped lawsuits against several well-known encryption companies.

Policy and Regulatory Trends

At the policy level, the SEC is conveying new signals through intensive meetings and statements. In the first half of this year, the SEC has held 6 roundtable meetings related to encryption, covering core topics such as regulatory frameworks, custody mechanisms, asset tokenization, and DeFi.

On May 30, the SEC released a policy statement regarding staking activities on PoS networks, clarifying three types of staking behaviors that do not constitute the issuance of securities, providing the industry with clearer compliance guidance.

In addition, the ETF approval process has begun to speed up. On June 11, the SEC required several institutions planning to issue Solana spot ETFs to resubmit revised documents in the short term and promised to complete review feedback quickly.

Conclusion

From personnel changes to policy loosening, the SEC is re-establishing dialogue with the encryption industry. Although regulation will not completely disappear, the future regulatory environment may be more inclined towards guidance and co-construction, rather than purely high-pressure policies. Whether this internal transformation can truly bring new vitality to the encryption industry remains to be seen. However, it is certain that this series of changes at the SEC undoubtedly opens up new possibilities for the development of the encryption market.