SEC Commissioner Endorses Trump’s 2025 Initiative to Cease Crypto Crackdown

With Trump set to take office in January 2025, Uyeda is expected to become the acting chair of the Securities and Exchange Commission (SEC).

Uyeda has expressed his intention to pause new enforcement actions against crypto firms that have failed to register with the SEC, pending the establishment of clear regulatory guidelines. 

“The Commission’s war on crypto must end, including crypto enforcement actions solely based on a failure to register with no allegation of fraud or harm,” he said. “President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate.”

Such a move aligns with Trump’s campaign pledge to terminate what he called the “war on crypto” initiated under current SEC Chair Gary Gensler. Over the past three years, Gensler has overseen more than 100 enforcement actions against the cryptocurrency industry.

Many of Gensler’s cases targeted serious violations such as fraud and money laundering, including actions against figures like Sam Bankman-Fried, the founder of the now-bankrupt exchange FTX. However, other cases have involved less severe infractions, such as allegations of unregistered securities sales against companies like Coinbase, Ripple, Kraken, Consensys, and Cumberland DRW.

The potential pause on enforcement raises questions about ongoing litigation involving companies like Coinbase and Ripple. A shift in the SEC’s stance could influence judicial proceedings, possibly encouraging judges to consider the agency’s new position.

Gensler has maintained that all crypto tokens, except for Bitcoin and Ethereum, are securities falling under the SEC’s jurisdiction. The crypto industry, legal experts, and several members of Congress have strongly opposed this viewpoint. Commissioners like Uyeda and Hester Peirce have criticized the current approach, advocating for transparent regulation and collaboration with industry participants.

While Trump has vowed to “fire” Gensler on his first day in office, he can only remove him from the chairmanship. Gensler’s term as a commissioner doesn’t expire until June 2026, and there is speculation he might choose to remain to influence policy decisions. Uyeda is likely to step in as acting chair until a new leader is appointed.

“Crypto Mom”, Source: X

Commissioner Peirce, whose term ends in June 2025, has reportedly expressed a desire not to chair the SEC. Instead, she is interested in leading a “crypto task force” aimed at reevaluating the agency’s approach to digital assets and fostering open dialogue with the industry.

Known as “Crypto Mom” for her supportive views, Peirce has advocated for “safe harbors” that allow companies working with emerging technologies like blockchain and AI to operate under agency observation without the immediate threat of enforcement actions.

Uyeda has been a vocal critic of the SEC’s current approach to crypto regulation. In an October 2024 interview on Fox Business’s “Mornings with Maria,” he described the agency’s policies as “really a disaster for the whole industry.” He criticized the reliance on “policy through enforcement” without providing clear guidance.

With over 15 years of experience at the SEC, Uyeda has held various roles, including Senior Advisor to former Chairman Jay Clayton and positions within the Division of Investment Management. His extensive background provides him with a deep understanding of the regulatory landscape and the challenges facing the cryptocurrency sector.

Uyeda’s proposed pause on enforcement actions is seen by many in the industry as a step toward more collaborative and transparent regulation. By halting actions based solely on registration failures without allegations of fraud or harm, he aims to create an environment where companies can innovate while working toward compliance.