Digital Chamber Proposes Day 1 Reforms for New SEC Chair, Together with Repeal of Hinman Speech and SAB 121

• Digital Chamber of Commerce Proposes 90-Day Motion Plan for SEC Reforms to Assist Crypto Sector.
• Key proposals embody repealing the Hinman speech, SAB 121, and ending non-fraud enforcement actions.
• The plan seeks to create clearer and innovation-friendly laws for digital belongings underneath the brand new administration.

Because the US prepares for a brand new administration underneath President-elect Donald Trump, the digital asset trade is seizing the chance to push for a much-needed reset in its relationship with the Securities and Trade Fee (SEC).

The Digital Chamber of Commerce (TDC), by means of its Token Alliance Management Committee, has developed a complete 90-day motion plan to advertise transparency, belief and clear regulatory tips for the crypto sector.

Day 1 Priorities: Repeal Outdated Guidelines

The TDC plan begins with pressing reforms. It requires repeal of the SEC's 2019 steering on digital belongings as “funding contracts,” which has been broadly criticized for creating confusion.

Moreover, he ought to formally distance himself from Hinman's 2018 speech, which led to controversy by prioritizing some belongings over others, to keep away from additional market disruption.

Different recommendations embody:

• Suspension of cryptocurrency enforcement actions, Wells notices, and litigation that doesn’t contain fraud or investor hurt.
• Revision of Workers Accounting Bulletin (SAB) 121, which forces depositories to carry cryptoassets on their steadiness sheets.
• The shutdown proposed adjustments to Rule 3b-16 that may classify decentralized finance (DeFi) protocols as “exchanges.”

A name for smart regulation of cryptocurrencies

The Digital Chamber's agenda displays rising frustration with the SEC's historic “regulation by enforcement” method. Paul Atkins, the president-elect's nominee to chair the SEC and a well known pro-crypto advocate, is predicted to work carefully with commissioners Hester Peirce and Mark Uyeda to implement these reforms.

Each commissioners have been outspoken of their criticism of the SEC's stance on digital belongings, hinting at a possible transformation in how the company engages with the sector going ahead.

Along with ending aggressive enforcement actions, the TDC is advocating for the introduction of customized rulemaking for digital belongings and the issuance of no-action letters to offer much-needed readability to market contributors.

Business optimism for regulatory progress

Specifically, the Token Alliance reported productive conferences with the employees of Commissioners Peirce and Uyeda, emphasizing their willingness to contemplate continued contributions to the trade. This collaborative method may mark a turning level within the SEC's relationship with the crypto neighborhood.

With a pro-crypto administration taking on, the subsequent 90 days may form the way forward for US crypto regulation and pave the best way for extra constructive engagement between the SEC and the trade.