Is This the End of Crypto Regulation as We Know It? SEC's Shift Explained

Crypto

2025-04-09T09:36:28.460+02:00

Wednesday, 09/04/2025 | 07:36 GMT by
Damian Chmiel

Trump’s SEC is dramatically shifting away from aggressive crypto enforcement to clearer rulemaking.
Acting Chairman Uyeda halts non-fraud actions, including those of the biggest industry players.
Finance Magnates’ April 2025 Compliance Report provides essential insights on this regulatory revolution.

The
regulatory pendulum is swinging dramatically. As Wall Street braces for impact,
crypto firms are glimpsing a potential renaissance under the SEC’s new
leadership. The
April 2025 Finance Magnates Compliance Report reveals a shift that
could reshape digital asset regulation for years to come.

The Crypto Regulation No
One Saw Coming (But Everyone Hoped For)

Mark Uyeda,
currently serving as Acting SEC Chair, has already halted new enforcement
actions against crypto firms unless fraud is involved. This represents a fundamental
departure from the aggressive stance of former Chair Gary Gensler, whose
regulatory approach had many crypto innovators running for cover.

Josh Hess of Bryan Cave Leighton Paisner LLP

“During
the second Trump Administration, the SEC will likely remain active in enforcing
the securities laws, but its focus will probably shift towards cases that
involve retail investor harm and true fraud, and away from cases about crypto
intermediaries and negligent corporate disclosure failures,” notes Josh
Hess of Bryan Cave Leighton Paisner LLP in the report.

For
cryptocurrency firms, this regulatory pivot couldn’t come at a more critical
juncture. The industry has weathered years of uncertainty, with major players
like Coinbase, Kraken, and Ripple entangled in protracted legal battles. Now,
these cases are reportedly “under review and will be dropped or
settled,” according to verified developments outlined in the report.

SEC, FATF and More

But the
transformation extends far beyond just dropping lawsuits. The new SEC
leadership is expected to replace the contentious Howey Test with clearer
crypto asset classification, potentially eliminating the regulatory ambiguity
that has plagued the industry. This could spark unprecedented innovation
and investment in digital assets while providing much-needed clarity for
businesses.

The
compliance landscape is changing rapidly across multiple fronts. Beyond the SEC
shifts, the report provides crucial insights on the Financial Action Task
Force’s evolving AML and CTF guidelines, particularly regarding the Travel Rule
implementation.

The Dubai
Financial Services Authority’s proposed capital requirement updates will also
impact brokers and investment firms differently, with potential increases for
high-volume brokers and fee-based investment firms.

crypto Access the FREE Compliance Report for April 2025

Get Your Free Copy of The Compliance
Report

As
regulatory environments transform globally, staying informed isn’t just
advantageous—it’s essential. The
April 2025 Finance Magnates Compliance Report
offers financial professionals the strategic intelligence needed
to navigate these changes confidently.

Whether
you’re leading a compliance team seeking to manage complex regulations, a legal
advisor tracking regulatory shifts, or a business leader making strategic
decisions, this comprehensive report provides actionable insights tailored to
your needs.

Don’t
navigate this regulatory revolution unprepared. Access the
FREE Compliance Report for April 2025 and transform regulatory challenges into
competitive advantages.

The Crypto Regulation No
One Saw Coming (But Everyone Hoped For)

Josh Hess of Bryan Cave Leighton Paisner LLP

SEC, FATF and More

Get Your Free Copy of The Compliance
Report

Don’t
navigate this regulatory revolution unprepared. Access the
FREE Compliance Report for April 2025 and transform regulatory challenges into
competitive advantages.

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Damian’s adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.