War on Crypto: SEC Commissioner Signals a Turning Point on Enforcement

U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda has openly supported President-elect Donald Trump's plan to end what Uyeda describes as the Biden administration's “war on crypto.”

The U.S. Securities and Exchange Commission (SEC)’s (SEC) heavy-handed approach to regulating crypto may be coming to an end, with one commissioner expressing support for scaling back enforcement actions against crypto firms and highlighting the need for clear guidelines.

According to Fox Business, SEC Commissioner Mark Uyeda, a Republican who joined the commission in 2022, highlighted President-elect Donald Trump’s plan to end the Biden administration’s “war on crypto.”

“President Trump and the American electorate have sent a clear message. Starting in 2025, the SEC’s role is to carry out that mandate,” Uyeda said during an interview on Thursday.

The commissioner noted that the SEC should pause enforcement actions against crypto firms solely for registration failures, and instead focus on establishing clearer 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 stressed.

Uyeda’s stance aligns with Trump’s campaign promise to curb enforcement efforts led by current SEC Chair Gary Gensler, who has enacted over 100 regulatory actions against crypto companies.

While several cases involved serious misconduct, such as fraud in cases tied to figures like Sam Bankman-Fried of FTX, other actions have targeted firms like Coinbase, Ripple, and Kraken over alleged unregistered securities sales.

Gensler’s view that “all crypto tokens aside from bitcoin and ether are securities under the SEC’s jurisdiction” has sparked significant opposition.

Both Uyeda and fellow SEC Commissioner Hester Peirce advocate for a framework that emphasizes guidance over enforcement, with Peirce specifically promoting “safe harbors” for emerging blockchain and AI ventures, allowing them to operate under SEC observation without immediate penalties.

Trump has pledged to fire Gensler on his first day in office. Known as “Crypto Mom” for her supportive stance on digital assets, Peirce reportedly favors leading an internal SEC “crypto task force” rather than becoming chair. Sources indicate this task force would focus on re-evaluating the agency’s approach to crypto regulation and establishing open communication with industry participants to promote regulatory clarity.