Goodbye Gensler! The U.S. Securities and Exchange Commission welcomes new acting chairman Mark Uyeda, who may bring a change in the direction of encryption regulation.

The US Securities and Exchange Commission (SEC) is entering a leadership transition period, with SEC Commissioner Mark Uyeda set to assume the role of Acting Chairman until the official nominee, Paul Atkins, appointed by President Trump, is confirmed by the Senate. Uyeda has been supportive of easing regulations on the Crypto Assets industry, and this personnel change may have a significant impact on the policy direction of the encryption industry.

Uyeda takes over: Potential changes in the direction of encryption regulation

Media outlet CoinDesk believes that the appointment of Mark Uyeda as the acting chairman of the SEC could bring new opportunities to the encryption industry. Like fellow Republican commissioner Hester Peirce (known as the "crypto mom"), Uyeda is supportive of the encryption industry and has publicly criticized the SEC's strict regulatory policies towards the encryption industry.

For example, he has expressed his opposition to SAB 121, which is considered to make it difficult for banks to serve digital asset customers. His position indicates that during his tenure, he may take measures to abolish this policy.

As a legal advisor to former SEC commissioner Paul Atkins, Uyeda's experience also highlights his connection to the encryption industry. Atkins himself currently runs a consulting firm related to encryption in Washington, which may further indicate Uyeda's open attitude towards encryption policy.

Gensler stepping down: a 'archenemy' of the encryption industry bids farewell

Former SEC Chairman Gary Gensler officially resigned on January 20, ending his term synchronously with Trump's inauguration. Over the past few years, Gensler has been a major 'adversary' of the Crypto Assets industry, promoting several controversial Crypto Assets policies during his tenure. For example, he intensified law enforcement actions, proposed strict Crypto Assets accounting rules, and prevented the establishment of spot ETFs. Even though ETFs had to be approved eventually due to court rulings, he still held a cautious and even hostile attitude towards the Crypto Assets industry.

Gensler's policy is based on a core viewpoint: existing laws are sufficient to classify and regulate Crypto Assets. However, this position is still controversial within the US courts, with some judges in favor and others opposed. These key legal issues are currently awaiting resolution in judicial proceedings.

SEC internal reorganization awaits the formal appointment of the chairman.

Uyeda's appointment signifies a major change within the SEC. Many senior legal officials, including members of the Enforcement Division and the Office of the General Counsel, have resigned under Gensler's leadership. This may present Uyeda with an opportunity to reassemble the team, but it could also slow down the progress of some significant policies.

As acting chairman, although Uyeda has full decision-making authority, past practice shows that acting chairmen usually choose to wait for the formal chairman to take office before making some key decisions. However, whether Uyeda will follow this tradition remains to be seen.

CFTC also enters a transition period

Similar to the SEC, the Commodity Futures Trading Commission (CFTC) is also in a transitional phase. Republican commissioner Caroline Pham has been appointed as acting chairman, replacing outgoing Democratic chairman Rostin Behnam. However, Trump has not yet formally nominated the next chairman of the CFTC.

Currently, there is a balance of power between the two parties within the CFTC, while the SEC is composed of two Republican commissioners facing off against a sole Democratic commissioner, giving them a 2 to 1 advantage. This numerical distribution may further influence the policy orientation of the SEC.

Goodbye Gensler! The SEC welcomes its new acting chairman Mark Uyeda, who may bring about a change in the direction of encryption regulation. This article first appeared on ChainNews ABMedia.