The US Securities and Exchange Commission (SEC) is starting to change the way it handles crypto regulations. Instead of relying primarily on lawsuits and enforcement actions, it is now trying to create clear and structured rules.
On March 20, the SEC quietly sent two significant proposals to the White House. One focuses on making hedge funds and private equity firms more transparent.
Meanwhile, the second offer was more important for crypto. The second aims to create a clear system for classifying digital assets.
White House reviews crypto commentary
If approved, many cryptocurrencies may no longer be classified as securities, reducing confusion and providing the industry with clearer rules to follow. The SEC is moving toward setting clear rules rather than relying on lawsuits. reported by Bloomberg.
The proposed “innovation exemption” highlights this change. Instead of strict enforcement, the SEC offers a more supportive environment where crypto companies can operate with fewer restrictions. This means new companies won’t need to meet complex registration requirements right away; This makes it easier for them to establish and grow in the United States.
Explanation On the same subject, Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig said:
Chairman Atkins and I have now developed a new interpretation that will provide clarity on what is and what is not a security.
Addressing the reason behind this shift, Selig explains that previously the SEC, under Chairman Gary Gensler, companies were often left to guess what was and was not allowed. This confusion has pushed many crypto businesses to move outside the US
In fact, due to this uncertain environment, many developers hesitated and stopped taking risks. Now new SEC proposals seek to address this problem by bringing greater clarity and encouraging innovation to return to the United States.
Private fund space is also breathing
A similar change is taking place in the private fund space. The SEC has delayed some reporting rules (Form PF) until October 1 and is rethinking the stringent data requirements introduced under Gary Gensler.
This brings up an important debate again. Following the collapse of Archegos, regulators pushed for greater transparency to reduce risk. But now the SEC is shifting its focus to easing compliance burdens for firms, aiming to strike a balance between market safety and regulatory simplicity.
Notably, this change comes at a time when there is a significant disconnect between price movements and investor sentiment.
Market scenes are full of question marks
Total crypto market cap in the last 24 hours went up It increased by approximately 3.26% at the time the news was published. However, despite this rise, investor confidence is still very low.
The Crypto Fear and Greed Index remains stuck in the “Extreme Fear” zone, indicating that people are still uncertain and cautious.
However, with all these developments, the SEC bridge There is a difference between its legacy approach and future legislation such as the CLARITY Act, which aims to provide greater legal clarity.
It goes without saying that the SEC also works closely with the CFTC. recently translation On March 17, they argued that most digital assets should not automatically be considered securities. This helps reduce risk and uncertainty for crypto companies in the US
It is not yet clear whether these new rules will be temporary until Congress passes the full legislation or will be a long-term framework. But one thing is clear: Under Chairman Paul Atkins, the SEC is trying to put an end to this confusion.
Final Summary
- Collaboration between the SEC and CFTC is an important step toward unified oversight that reduces regulatory overlap and uncertainty.
- Clear classification of digital assets could finally eliminate the gray zone that has stalled crypto innovation.
