US gov’t actions give clue about upcoming crypto regulation

Key Points

  • The Trump administration's actions suggest a shift in crypto regulation, potentially not treating cryptocurrencies as securities.
  • The administration has taken steps to address the crypto industry's debanking problem, allowing banks to engage with cryptocurrencies more freely.
  • The SEC has dropped several high-profile cases against crypto firms, indicating a possible change in enforcement priorities.
  • New guidance from banking regulators indicates a more permissive environment for crypto-related activities.

Summary

The Trump administration's approach to cryptocurrency regulation hints at a significant shift, potentially moving away from classifying cryptocurrencies as securities. Early actions include addressing the crypto industry's debanking issues by reversing previous restrictions, allowing banks to engage with cryptocurrencies more freely. This includes the repeal of SAB 121 by SAB 122, which had previously made it difficult for banks to hold cryptocurrencies. Additionally, the SEC has dropped several notable cases against crypto firms like Coinbase, Kraken, and Ripple, suggesting a change in enforcement priorities. These dismissals imply that the SEC might not consider most token-generating activities as investment contracts. Furthermore, new guidance from banking regulators like the OCC and FDIC indicates a more permissive environment for crypto-related activities, potentially opening up new avenues for crypto businesses in the U.S. This flurry of policy changes and dismissals could signal a sea change in how the U.S. government views and regulates cryptocurrencies, providing a more favorable regulatory landscape for the industry.

cointelegraph
April 9, 2025
Crypto
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