In February, the Government Efficiency Department (Doge) began to request public information related to the United States stock and values commission (SEC), a measure that suggests that the reform in the agency is imminent.
Since then, the SEC, in line with President Trump, has adopted a much less adverse position towards the cryptocurrency industry, as evidenced by the appointment of cryptographic personnel and the abandonment of numerous demands and research in cryptographic companies. But Dege has the potential to implement a greater change, and the interest in the SEC indicates a growing pressure towards regulators to reassess its approach to digital assets.
In response to the request for public contributions, Paul Grewal, legal director of Coinbase, one of the companies that no longer faces a demand for the SEC, proposed a policy that requires the SEC to reimburse the legal costs for companies that successfully challenge compliance efforts. The motivation for his suggestion is obvious, but Dogle’s impact on cryptography will probably be a bit broader.
Like Joel Khalili summarized in CablingThe recent withdrawal of the SEC of the demands represents “an early sign of the agency’s intention to work on the arm with the industry to create a set of rules to govern the cryptographic transactions and products.”
As things are currently, the lack of proactive orientation of the SD makes companies plan long -term compliance strategies, and their compliance actions often come after years of operation, leaving companies and their investors exposed to unforeseen legal risks. In the future, this will probably change.
Clear compliance with the reactive application
Trusting the application instead of proactive orientation has forced companies such as Coinbase, Ripple and Celsius to spend millions in litigation to clarify their regulatory position. But in a case against the debt box, the SEC admitted inaccuracies in its statements, which led a court to order the SEC that covers the legal expenses of the company, a preview of the coinbase suggestion. The ruling threw doubts about the credibility of the agency and highlighted the concerns about its application practices.
In the future, I expect to see the regulatory agencies, including the SEC, under greater pressure to align with the United States Treasury approach, which prioritizes the clear paths of compliance over the reactive application. Treasury digital asset guidelines are much more structured and address key areas such as tax, compliance and measures of AML. Standardized definitions of what constitutes security in cryptographic space are essential to help companies structure their products properly from the beginning.
An act of balance
In addition to taking treasure notes, the SEC can also seek inspiration from the IRS. A “safe port” arrangement for initial stage projects could encourage innovation while guaranteeing compliance over time, similar to the proposals previously discussed by the SEC Commissioner, Hester Peirce. The IRS already adopted this approach, issuing a temporary transition relief for cryptographic taxpayers in January 2025.
The IRS historically was based on voluntary dissemination programs to make taxpayers fulfill instead of imposing punitive actions in advance. A model similar to cryptographic regulation should also be applied.
While some people assume that inherently the regulation hinders innovation, the opposite may be true. This is because clearly defined railings will attract more entities reluctant to enter the ecosystem and help it grow. A light regulatory touch request The robust backend application can lead to unnecessary friction between regulators and companies.
In total, a better coordination between the SEC, the Treasury and the IRS would help prevent regulatory conflicts and simplify compliance obligations for digital asset companies and interested parties. Treasury digital asset guidelines already offer a solid base for this type of cross -agency alignment. The current regulatory uncertainty and the reactive application approach to the SEC suffocate growth, while a clearer and more coordinated frame would benefit the entire ecosystem.
The final result
Among the request for contributions from DEGE, the broadest commitment of the new administration with the reform of digital assets and the Coinbase proposal, the stage is established for reforms with the objective of making regulatory supervision more predictable. While we are in the early stages of the new administration, the changes are already happening at an amazing pace. It is clear that Doge’s influence on SEC policies will have an impact, especially with public discourse on these issues that further strengthen the case of clearest guidelines instead of regulation by the application.
Of course, it is worth noting that Doge’s plans for the SD will probably extend beyond cryptography, just like efforts to regulate the industry extend beyond the SEC. Ultimately, it would be beneficial for the new administration, together with Congress, to create a legislative framework for the industry, so that individual companies and taxpayers understand equally what constitutes a merchandise, security and digital active. In other words, we must learn to walk before running. Meanwhile, SEC must adopt a strategy that can foster growth while maintaining investor protections.
