What is the first step for SEC Acting Chair Uyeda after Gary Gensler's departure?

Author: Azuma, Odaily Planet Daily

In the early hours of January 21, the U.S. Securities and Exchange Commission (SEC) officially released a statement announcing that today would be Gary Gensler's last day as SEC Chairman. This SEC leader, who has been entangled with the cryptocurrency industry for more than three years, has finally reached the day of farewell.

Shortly thereafter, the White House issued another document announcing that current SEC Commissioner Mark Uyeda will serve as the acting chairman of the SEC, temporarily leading this crucial regulatory agency for the industry until the new SEC chairman (expected to be Paul Atkins) is confirmed and takes office.

Uyeda is a Republican member who has served as an SEC commissioner since June 30, 2022. Before becoming an SEC commissioner, Uyeda worked at the SEC for over 15 years, gaining extensive frontline experience.

What is the attitude towards cryptocurrency?

Uyeda has maintained a friendly attitude towards cryptocurrency, and he has been regarded by the industry as a steadfast ally within the SEC alongside "Crypto Mom" Hester Peirce.

In last year's ETF resolution concerning the development of the entire industry, Uyeda also cast a crucial vote in favor.

Although he is within the SEC, Uyeda does not agree with Gary Gensler's aggressive enforcement actions against the industry, having opposed several enforcement actions initiated by the SEC against industry projects alongside Peirce.

In an interview with Fox Business last October, Uyeda stated that Trump had described the SEC's past actions as a "war on cryptocurrency," and that this situation must end with clearer regulatory guidelines.

"I think our policies and practices over the past few years have really been a disaster for the entire crypto industry. We have been pursuing a 'mandatory enforcement policy,' and we haven't done anything to provide guidance."

Last week, Reuters reported that several informed sources revealed that the Republican leadership at the SEC is preparing to immediately begin reforming the agency's cryptocurrency policies once Trump is in office. Measures being considered by Uyeda and Peirce include initiating relevant procedures to ultimately establish guidance or rules clarifying under what circumstances the agency will consider cryptocurrencies as securities, and reviewing some cryptocurrency enforcement cases currently in court.

SEC Succession Matters

It is important to emphasize that Uyeda is only the acting chairman of the SEC. Trump has nominated former SEC Commissioner Paul Atkins to officially lead the agency, but it is currently unclear when Atkins's appointment will be approved. However, it is expected that before Atkins takes over, Uyeda will still make some substantive policy changes as the agency's interim leader.

There is also no need to worry too much about potential changes in attitude after Atkins takes office. Atkins was a subordinate of Peirce and Uyeda, and although he has made relatively few explicit statements regarding cryptocurrency, he has publicly criticized the SEC's excessive regulation of the cryptocurrency industry.

Considering his past experience and potential attitude, Atkins's stance should also lean towards supporting cryptocurrency.

CFTC Also Welcomes New Leadership

In addition to the SEC, another core regulatory agency, the Commodity Futures Trading Commission (CFTC), has also welcomed new leadership. Rostin Behnam has stepped down, and Trump has nominated Caroline Pham to serve as the acting chairman of the CFTC, with expectations that she will later transition to the permanent chair.

Similar to Atkins, while Pham has not been as outspoken in her support for cryptocurrency as Uyeda, the market still expects her to maintain a relatively friendly attitude towards the industry.

The Beginning of a Shift in Direction

With Trump officially taking office and the leadership changes at core regulatory agencies like the SEC and CFTC, the shift in cryptocurrency regulation has already begun.

For the cryptocurrency industry, which has long suffered from regulatory troubles, the next few years may be the most favorable growth environment in the industry's history—though this "honeymoon period," which is somewhat related to garnering votes, is itself somewhat fragile.

Idealists who believe in decentralization may complain that relying on the current political environment is not what Satoshi Nakamoto intended when writing the Bitcoin white paper. However, from a realistic standpoint, this upcoming regulatory spring may be the best opportunity for all parties in the industry to seek development.