SEC Major Changes: Can the New Leadership Bring Opportunities for the Encryption Industry?

In the first half of 2025, the U.S. Securities and Exchange Commission (SEC) underwent a significant internal adjustment. The internal storm, marked by the replacement of several key executives, large-scale layoffs, and departmental restructuring, is quietly reshaping the regulatory landscape of the encryption market.

Policy Shift Brought by Leadership Change

In the first half of this year, the SEC experienced a change of three chairpersons. Compared to former chair Gary Gensler, the new chair Paul Atkins is seen as having a more open attitude towards the encryption industry. Atkins previously served as the co-chair of the Digital Chamber's Token Alliance, actively promoting the establishment of industry standards for token issuance and trading. Since taking office, he has publicly stated his pro-encryption stance several times, promising to return to the fundamental mission of promoting rather than suppressing innovation.

Core Department Personnel Adjustments

In addition to the change of the chairperson, the SEC's core departments have also undergone several key personnel adjustments. Among them, at least two new executives are considered to have experience in the encryption industry: Brian T. Daly, Director of the Investment Management Division, and Jamie Selway, Director of the Trading and Markets Division. These two divisions are extremely important in the SEC's structure, responsible for regulating investment products and services as well as the operating rules of market infrastructure.

At the same time, the SEC's enforcement division, a key "power center", has also undergone a personnel change. After the departure of the former director, who had a long-standing tough stance on encryption, the new acting director has shown a noticeable easing in enforcement. Between February and March of this year, the SEC dropped lawsuits against several well-known encryption companies.

Changes in Policy and Attitude

In terms of regulatory trends, the SEC is repositioning its stance on the encryption industry through intensive meetings and policy statements. In the first half of this year, the SEC has held multiple roundtable meetings related to encryption, covering core topics such as regulatory frameworks, custody mechanisms, asset tokenization, and DeFi.

On the regulatory front, the SEC is also gradually easing its stance. At the end of May, the SEC released a policy statement regarding staking activities on PoS networks, clearly defining for the first time the types of staking activities that do not constitute securities issuance, providing a clearer compliance pathway for current encryption staking services.

At the same time, the ETF approval process has also begun to accelerate. The SEC has notified several institutions planning to issue cryptocurrency spot ETFs, requiring them to resubmit revised documents in the short term, and has promised to complete the review feedback quickly.

Looking to the Future

This series of personnel changes, relaxed rules, and softened attitudes marks the SEC's re-engagement in dialogue with the encryption industry. While regulation will not completely disappear, future regulation may be more inclined towards guidance and co-construction, rather than purely high-pressure policies. This shift provides new opportunities for the development of the encryption industry and brings more certainty to market participants.

However, we also need to maintain a cautiously optimistic attitude. The actual implementation of policies will take time, and the long-term stance of the new leadership also needs further observation. Participants in the encryption industry should actively seize this opportunity while continuing to promote self-discipline and compliance in the industry to build a healthier and more sustainable encryption ecosystem.