With the re-entrance of Donald Trump as the President and the confirmation of Gary Gensler’s resignation, web3 investors are positive that a pro-crypto SEC will emerge to support the U.S. cryptocurrency market. Extensive discussions are going on regarding the expected candidates and the regulatory framework.
Entrepreneurs and innovators like Elon Musk, along with renowned pro-crypto personalities, are trying to explore the potential of the web3 market and it is almost certain that the current regulatory framework will be rewritten by the SEC to support this vision.
The interviews done by Donald Trump’s transition team imply that we can expect a personality closely associated with Trump to become the next SEC chairman, such as Paul Atkins or Brian Brooks. Under a visionary chairman hood, we can anticipate the removal of various executive and administrative barriers.
What Regulatory Changes to Expect?
The latest updation in regulations was regarding short selling where the managers who hold short positions exceeding $10 million or 2.5% of a company’s share should file From SHO monthly. Although this rule is implemented to detect market manipulation by increasing transparency, the SEC will publish this data, implementing a threat to privacy. Various previous upgrades also show the SEC’s ignorance of privacy.
SEC is infamous around the crypto community for implementing aggressive rules, which is, according to various experts, rooted in the fear of a sophisticated technology replacing the power of the traditional economy. However, the recent advancements in the blockchain world invite Government-based regulations to coexist with the emerging web3 technology.
With a realization that the integration of blockchain technology in American finance will modernize the U.S. financial system, which is indeed a step towards the evolution of the human economy, the pro-crypto SEC will probably introduce a hybrid-economical framework in regulations. It is expected to soon build a government-owned strategic Bitcoin reserve, along with approval for altcoin ETFs.
The SEC’s issues with XRP and other altcoins like BNB, SOL, ADA, and MATIC are expected to be solved, as evident in the recent surge of these coins. SEC’s behavior of targeting individual firms rather than focusing on issuing rules that provide a space of co-existence is also expected to change with the arrival of a new chairman.
What does a Pro-Crypto SEC mean to the market?
At present, the total market capitalization of the crypto market is around 3.38 trillion dollars, which is expected to reach around 5 billion at the peak of the altcoin bull run. A supportive SEC can aid the arrival of new projects and the inflow of funds to the industry. It can help the blockchain industry thrive all around the U.S.
Who Will be the Next SEC Chairman?
Apart from Paul Atkins or Brian Brooks, the candidates expected by the crypto community for the SEC chairman post are Hester Peirce, Chris Giancarlo, Robert Stebbins, and Dan Gallagher. According to Jenice Malecki who chairs the New York State Bar Association’s Securities Arbitration Committee, Trump is expected to pick Dan Gallagher or Hester Peirce.
Concerning hearing his names in the lists, Dan Gallagher has no interest in the post. “I have made it clear that I do not wish to be considered for this position,” he said. Another candidate is Mark Uyeda, an SEC commissioner. The finalization of the person for the role is expected to take place this week. We can see SEC’s new regulatory frameworks coming one by one, starting from January 20, Trump’s inaugural day.
Lastly, the U.S. model of the crypto economy, if successful, will be adopted by nations around the world, making America Great Again!
