As 2025 begins, the crypto sector is gearing up for major regulatory changes. The US Securities and Exchange Commission (SEC) is undergoing significant changes, signaling a new era for the crypto industry.
The re-election of Donald Trump and the appointment of pro-crypto leaders like Paul Atkins and David Sacks fueled those expectations.
Many believe this signals a turning point for the future of the industry, especially after SEC Chairman Gary Gensler’s tough stance. His tenure has been marked by regulatory uncertainty and legal battles with industry leaders.
US SEC 2024 Overview and 2025 Expectations
Despite the significant milestones achieved, 2024 marked a roller coaster ride for the crypto industry. Bitcoin (BTC) has reached the $100,000 mark for the first time.
Also, Spot Bitcoin and Ethereum Exchange Traded Funds (ETFs) have gained a lot of popularity due to institutional acceptance.
Namely, the industry witnessed the fourth halving of Bitcoin in the second quarter. These events marked the maturation of the market. However, these milestones have been overshadowed by relentless regulatory action.
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Under the leadership of Gary Gensler, the SEC has taken an aggressive approach to crypto, targeting major players like Ripple, Coinbase and Uniswap. His claims that cryptocurrencies are linked to fraud have heightened tension in the industry.
Gensler’s aggressive approach has drawn sharp criticism from crypto advocates and political leaders.
Donald Trump’s campaign promise to fire Gensler and adopt a more innovation-friendly approach has renewed confidence among crypto supporters.
The future president’s promise offered hope for regulatory changes to benefit the industry.
After the election victory, Gensler announced his resignation. This paved the way for Trump to appoint Paul Atkins as the new chairman of the SEC.
Expectations for 2025 are high, with the hope that Paul Atkins’ leadership will bring clarity to crypto regulation. Many believe it can protect investors while spurring innovation in the industry.
Role of Paul Atkins and Crypto Car
Paul Atkins, a former SEC commissioner known for his pro-market policies, will lead the SEC for 4 years.
Atkins is known for promoting innovation while protecting consumers.
His approach marks a clear shift from the strict regulatory stance of his predecessor. His appointment could lead to a potential change in the SEC’s approach to digital assets.
In a bold move, Trump created the new position of “Crypto Czar.”
The new president appointed David Sacks, a renowned technology investor, to oversee cryptocurrency and artificial intelligence policy. Sacks will be responsible for shaping regulations in these areas.
Atkins’ vision is focused on transparency within the SEC and working with self-regulatory organizations.
It will work to simplify the rules, making them clear and fair, while promoting innovation. This approach was supported by entrepreneurs and investors.
However, figures such as Senator Elizabeth Warren have criticized it, fearing it could undermine investor protections.
Crypto ETF Applications and Prospects
Under Gensler, the SEC was hesitant to approve Spot Bitcoin ETFs, but in late 2024, these ETFs were approved, marking a key shift.
With Atkins at the helm, the crypto industry is hoping for faster reviews of other crypto ETF proposals. This includes potential XRP and Solana (SOL) ETFs.
Market experts believe the SEC’s new leadership could open up more opportunities for crypto investment and growth.
By creating a more favorable regulatory environment, Atkins could attract institutional investors who have been repelled by the SEC’s past approach.
While challenges remain in striking a balance between innovation and investor protection, Atkins and Sacks can help the SEC strike a better balance.
The shift to a pro-crypto regulatory environment under Trump marks a pivotal moment for the crypto industry.
With rising Bitcoin prices and renewed institutional interest, a revamped SEC under Paul Atkins has the potential to change the industry. His tenure could help position the United States as a global leader in blockchain innovation.
