SEC Chair Proposes Review of Bitcoin Guidance

Acting SEC Chair Mark Uyeda has directed a review of crypto-related regulations, especially concerning Bitcoin futures and market disclosure.

The purpose of the review is to eliminate regulations that impede crypto innovation, potentially resulting in more favorable regulations.

The SEC has stated that stablecoins like USDT and USDC are not considered securities and are required to maintain separate operational and reserve funds.

Mark Uyeda, acting SEC chair, issued instructions to staff on April 5, 2025, to reevaluate various crypto-related rules, particularly those relating to crypto investments and Bitcoin futures investing standards.

This review encompasses directives on market disclosure letters, guidance on digital asset securities oversight, as well as Wyoming’s no-action letter and associated custody standards. The SEC announced its decision to reassess crypto-specific rules and administrative pronouncements based on current priorities via a message on X on April 5.

Statement from Acting Chairman Mark Uyeda: Pursuant to Executive Order 14192, Unleashing Prosperity Through Deregulation, together with recommendations from DOGE, I have requested Securities and Exchange Commission staff promptly to review the following staff statements.

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

Under Executive Order number 14192, President Trump ordered the review on January 31, 2025, to support economic development. Under Executive Order 14192, the US government expects its agencies to remove rules that block new business development. Under Executive Order 14192, President Trump introduced significant change by replacing his former “2-for-1” policy with a new mandate that every new rule must be accompanied by the removal of ten existing rules.

SEC Reassesses Crypto Regulations

Acting Chair Uyeda explains that the review is aimed at identifying rules that hinder crypto development and do not promote economic growth or innovation. The outcome of this evaluation process will determine whether crypto businesses will face more lenient and clearer regulations, potentially granting them more freedom.

Through its statement review process, the SEC aims to support the digital asset market. The evaluation is focused on identifying digital asset regulations that should be amended to align with the agency’s new goals and directives. The Securities and Exchange Commission’s intention is to review crypto regulations now that the commission endorses digital assets under the current administration rather than previous ones.

The SEC has decided to drop active legal actions against prominent cryptocurrency companies, including Coinbase, Consensys, and Kraken. Under the second Trump administration, the SEC is following a new direction that will continue to influence its actions in the digital asset market.

SEC Moves to Distinguish Stablecoin Assets

The SEC conducted a review and provided guidance on the regulatory classification of crypto assets in the market. On April 4, the commission stated that stablecoins like USDT from Tether and USDC from Circle are not considered securities. According to SEC guidelines, these stablecoins tied to liquid reserves no longer require transaction reporting, distinguishing them from other crypto assets.

Under SEC regulations, stablecoins managed by automated systems are not classified as exempt assets. Issuers of covered stablecoins must maintain separate operational and reserve funds and are prohibited from providing yield to token buyers.

The SEC’s pro-innovation stance may expand under Paul Atkins once he is confirmed as SEC chair. On April 5, the Senate Banking Committee approved Paul Atkins as chair of the Securities and Exchange Commission, with a full Senate vote pending. With Atkins leading the SEC, the approval process for crypto-related exchange-traded funds is expected to become more streamlined.

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