The Securities and Exchange Commission (SEC) has unveiled its Spring 2025 Rulemaking Agenda, and it’s clear that the crypto market is a focal point. While some anticipated the new Administration would bring in a period of deregulation, the SEC has a busy agenda now that Congress has starting working on establishing a comprehensive regulatory framework to govern the burgeoning crypto market. The agenda is a significant policy shift from prior rulemaking periods during which the SEC, under former Chair Gensler, focused on private fund advisers and increased disclosure requirements. The agenda is also a testament to the Trump Administration’s commitment to establishing clear guidelines and regulations that will shape the future of digital assets.
Key Highlights of the Agenda:
- Crypto Offerings and Exemptions: The SEC is proposing new rules for crypto offerings, including potential exemptions from Securities Act registration. This move could streamline processes for crypto companies while ensuring investor protection.
- Distributed Ledger Technology (DLT): Transfer agents will see new rules regarding the use of DLT, a technology that underpins cryptocurrencies. These rules aim to enhance transparency and efficiency in securities transactions.
- Trading of Crypto Assets: The agenda includes Exchange Act rules that will govern the trading of crypto assets on Alternative Trading Systems (ATSs) and national securities exchanges. This is a crucial step in integrating crypto assets into the broader financial market infrastructure.
- Broker-Dealer Regulations: Updates to Broker-Dealer Financial Responsibility and Recordkeeping and Reporting Rules will be tailored to address the unique characteristics of crypto assets.
- Advisers Act and ICA Custody Rules: Another proposal seeks to modernize these rules to explicitly address the custody of crypto assets. Clarifying custody requirements is vital for investment advisers managing digital assets on behalf of clients.
- Customer Identification Program (CIP) Rules: Moving towards finalization, these rules indicate that FinCEN’s investment adviser Anti-Money Laundering (AML) rule is not going away.
In a statement accompanying the release of the agenda, SEC Chairman Paul Atkins emphasized that this regulatory agenda marks a new day at the SEC. The agenda reflects the commission’s renewed focus on supporting innovation, capital formation, market efficiency, and investor protection. Chairman Atkins highlighted that a key priority of his chairmanship is establishing clear rules for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.
The SEC’s agenda reflects a balanced approach to regulation, aiming to foster innovation while safeguarding market integrity and investor interests. As the crypto market continues to evolve, these regulatory measures will play a pivotal role in shaping its trajectory.
