SEC may halt non-fraud cases as crypto regulation intensifies
Some SEC claims will be frozen
Republican members of the Securities and Exchange Commission (SEC), Hester Peirce and Mark Uyeda, are working to expedite the classification of cryptocurrencies as securities without waiting for the formal appointment of Paul Atkins as SEC Chair.
According to Reuters, citing informed sources, Peirce and Uyeda may begin shaping clearer crypto-asset regulations before Atkins officially takes office. Both commissioners have prior experience working under Atkins, which is expected to facilitate effective collaboration as they discuss potential cryptocurrency policy changes.
New role and strategic connections
Reports also suggest that the SEC may pause certain legal actions, particularly those unrelated to fraud allegations. This potential freeze has drawn industry attention, including that of Tron founder Justin Sun. In November, Sun acquired 2 billion World Liberty Financial tokens, becoming the largest investor and later an advisor to the Trump family’s crypto venture.
The SEC had filed a lawsuit against Sun and his companies in March 2023, accusing them of offering unregistered securities and engaging in “manipulative wash trading.”
However, in August, Sun and his legal team scored a partial victory when the court dismissed the SEC’s motion challenging the defense argument that the agency was overstepping its authority without evidence of securities being offered to U.S. residents.
If Sun successfully proves his innocence, it could have significant implications for the broader crypto industry and the SEC’s actions against globally operating crypto companies.
As we wrote, Tron, a leading blockchain network, made significant strides in combating financial crime in 2024, cutting down illicit activity by $6 billion.
