SEC to Undergo Temporary Reduction in Commissioners

According to PANews, starting next year, the U.S. Securities and Exchange Commission (SEC) will temporarily reduce its number of commissioners while awaiting Senate approval of President Donald Trump's nominee. During this period, only Republican commissioners Hester Peirce and Mark Uyeda will continue their duties. Peirce indicated that with the departure of SEC Chair Gary Gensler, the agency's stance on the crypto industry is expected to change significantly. At a recent Blockchain Association policy summit, Peirce stated, "We have strong tools and have always leaned towards enforcement. I believe that with new commission members and changes in composition, the types of cases may also change." Uyeda noted that due to the unique nature of federal agencies, most policy discussions occur behind closed doors. He explained, "The Administrative Procedure Act allows the public to comment on regulations, ensuring transparency." However, when SEC staff guidance does not align with SEC rules, such as in the SAB 121 case, the public does not have the opportunity to comment. In the SAB 121 case, both houses of Congress attempted to overturn the policy requiring digital asset custodians to report liabilities and "corresponding assets," but President Biden ultimately vetoed the resolution. Uyeda hopes the SEC will increase opportunities for public comment. Peirce emphasized that the SEC has come a long way down this path, and change is not easy. She directly addressed the crypto industry, saying, "It requires a joint effort from us and you, with a lot of hard work to get back on track, but I believe we can do it."