Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has conducted one of the most aggressive regulatory crackdowns on the crypto industry in the country’s history, viewing most digital assets as unregistered securities under decades-old finance laws. However, the recent Republican landslide at the polls could result in a rollback of enforcement action from the securities regulator, according to Bloomberg.
Gensler’s replacement is expected to push forward new regulations that will modify existing securities laws, enabling crypto companies to register and become compliant with rules that Gensler has been suing them for flouting. A change in SEC leadership could lead to new regulations more accommodating to crypto companies, a reduced focus on enforcement and lawsuits, and better prospects for bipartisan legislation.
The crypto industry has been seeking changes to the regulatory framework, and it appears that the recent political developments may lead to a shift in the approach to regulating cryptocurrencies.
