A former regulator believes that under Trump, the SEC will “vigorously enforce” crypto regulation.
Former SEC Division of Enforcement Assistant Director Jennifer Lee declared on May 2nd that the SEC’s stance on cryptocurrency would remain unchanged if Donald Trump were re-elected.
Lee told CNBC that the SEC had “vigorously pursued crypto cases” during Trump’s first term and brought “clarity and regulation” to the growing industry.
She forecasted that if Trump serves a second term, the SEC would continue to “clarify its position and oversight on crypto.”
The SEC’s stability in determining whether certain crypto agencies fit under its jurisdiction is questionable, but the extent of its authority over the industry is obvious, Lee added.
Crypto Regulation Drive by SEC During Trump Era
During Trump’s first term, Lee made no comments on the SEC’s activities that were consistent with the agency’s viewpoint. However, SEC Chairman at the time, Jay Clayton, brought some crypto sales under SEC jurisdiction in 2018, including during Senate hearings where he stated that all ICOs he had seen were securities.
Clayton also believed that some cryptos, including Bitcoin, were not securities at the time.
Others anticipate pro-crypto regulation. Another former member of the SEC, former Chief of the Internet Enforcement at the SEC John Reed Stark, argued that the SEC couldn’t be tough on crypto under Trump.
Stark stated in September that a Republican-appointed SEC chair would “significantly soften” attempts to implement crypto at the SEC.He also stated that Trump could soften his anti crypto regulation stance to appeal to crypto voters.
Trump’s NFT companies’ financial records confirm that Trump holds substantial cryptocurrency holdings.
Others expect pro-crypto policies
Others have suggested a similarly light touch. In January, House Majority Whip Tom Emmer stated that a second Trump administration may be “more friendly” to cryptocurrency legislation.
Cryptocurrency regulation should be phased in, Trump suggested in March.
No matter what policy developments take place, changes in presidential administrations may affect agency leadership. It is common for SEC chairs to resign when governments change. Gensler, the current SEC chairman, may resign if Trump wins. Gensler’s term ends in June 2026.
The outcome of the US presidential election is unclear. FiveThirtyEight predicts that Trump and Biden will have comparable chances of winning, with Trump at 41.7% and Biden at 40.7%.