šØ SECās Role in Crypto: Regulation or Roadblock? Major Policy Shifts Underway šŗšøšŖ
A new federal report recommends empowering the SEC and CFTC to immediately enable lawful digital asset trading across the U.S.āa major pivot toward clarity, innovation, and global leadership in Web3 finance.
š Whatās Changing?
For years, the SEC faced criticism for āregulation by enforcement,ā targeting firms like Flyfish Club, ShapeShift, and Stoner Cats 2 without offering clear guidance. Legal challengesālike Crypto Freedom Alliance of Texas v. SECāexposed the agencyās overreach, chilling innovation and pushing crypto businesses overseas.
But under mounting industry pressure and political momentum, especially from a Trump-aligned crypto task force, the narrative is shifting:
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Key Recommendations:
Grant the CFTC authority over non-security digital assets (spot markets)
Limit the SECās jurisdiction to true securities
Clarify custody, trading, and registration rules to legalize DeFi, staking, and NFTs
Replace punitive enforcement with innovation-first regulation
š§ Commissioner voices like Hester Peirce and Mark Uyeda have echoed these concerns for yearsācalling out the SECās vague and inconsistent standards as a barrier to adoption.
š Why It Matters:
Restores banking access after Operation Choke Point 2.0
Aligns U.S. policy with global crypto hubs (UAE, Singapore, Europe)
Supports liquidity, hiring, and decentralization in the U.S.
š With 72% of crypto holders favoring Trump and 83% of institutions planning to increase digital asset exposure, regulatory reform is no longer optionalāitās inevitable.
The SECās next move could unlock American crypto dominanceāor delay it indefinitely. Will they evolve?#SECProjectCrypto