Acting SEC Chair Uyeda Directs Staff to Review Digital Asset Regulations and Guidelines

Highlights:

• SEC reviews previous staff statements on crypto investment and digital asset regulations.
• Executive Order 14192 aims to reduce regulations and foster economic growth.
• SEC clarifies stablecoins are not securities but excludes algorithmic tokens from classification.

On April 5, Acting Securities and Exchange Commission (SEC) Chair Mark T. Uyeda directed agency staff to review several previously issued staff statements regarding crypto investment and the application of securities laws to digital assets.

The SEC is reviewing its statement on Bitcoin futures investments under the Investment Company Act, according to an X post. Other documents under review include investment contracts for digital assets and custody frameworks. The agency is assessing whether these still align with its current priorities.

The statement comes from SEC staff, not Commissioner Hester Peirce, so it is less binding. However, it still shows the SEC’s willingness to ease pressure on the digital assets sector under the leadership appointed by President Donald Trump.

– Staff Statement on Funds Registered Under the Investment Company Act Investing in Bitcoin Futures Market, available at https://t.co/lhoeGKfnQP

— U.S. Securities and Exchange Commission (@SECGov) April 5, 2025

Executive Order 14192 Aims to Cut Unnecessary Regulations

The order was made under Executive Order 14192, called “Unleashing Prosperity Through Deregulation.” It came after advice from the Department of Government Efficiency (DOGE). President Trump gave the order on January 31. It aims to lower the rules that create extra work for businesses and people in the US. 

The order tells federal agencies to remove rules that are not needed. These rules could slow down new ideas or hurt the economy. Uyeda said the staff would check the statements to determine if they need changes or removal to align with the agency’s goals.

The order focuses on cutting regulations with a “10-for-1” rule. This means agencies must remove ten rules for every new one they propose. It’s a big change from the “2-for-1” policy used during Trump’s first term. The SEC staff’s review may result in simpler or clearer rules for crypto companies or less oversight, depending on what they find.

Uyeda stated:

“The purpose of this review is to identify staff statements that should be modified or rescinded consistent with current agency priorities.”

SEC Shifts Focus, Clarifies Stablecoin Status and Drops Crypto Cases

Under the second Trump administration, the SEC is expected to change its priorities and approach. The regulator has become more crypto-friendly than in previous administrations. In recent weeks, the SEC has dropped cases against major crypto companies, including Coinbase, Consensys, and Kraken.

Moreover, the SEC is working to clarify which crypto assets are securities. On April 4, the SEC stated that stablecoins like Tether’s USDT and Circle’s USDC are not securities. These tokens, backed by fiat reserves and redeemable at a 1:1 ratio with USD, don’t need transaction reporting to the SEC. The criteria exclude algorithmic stablecoins that rely on software to maintain their dollar peg. It also restricts covered stablecoin issuers from mixing reserves with operational funds or offering yields to token holders.

The SEC has determined that fully-reserved, liquid, dollar-backed stablecoins are not securities. Therefore blockchain transactions to mint or redeem them do not need to be registered under the Securities Act. Helpful clarity from @SECGov. pic.twitter.com/oUsq0snLaF

— David Sacks (@davidsacks47) April 4, 2025