Major Changes within the SEC: Can the New Leadership Open a New Era of Encryption-Friendly Policies?

In the first half of 2025, the U.S. Securities and Exchange Commission (SEC) underwent a significant internal adjustment. Multiple key executive changes, mass personnel departures, and departmental restructuring are quietly reshaping the regulatory landscape of the encryption market.

Chairperson Change, Adjusting Encryption Regulatory Direction

In the first half of 2025, the SEC experienced a change of three chairpersons: Gary Gensler during the Biden administration, acting chair Mark T. Uyeda, and current chair Paul Atkins. Unlike Gensler's hardline stance, Uyeda and Atkins are seen as having a more open attitude towards the encryption industry.

During his brief tenure as a proxy, Uyeda swiftly implemented the new government's pro-encryption commitments: establishing a special working group for cryptocurrencies, repealing the controversial SAB 121 accounting policy, and setting up a "Unit for Networks and Emerging Technologies" to replace the previous Department of Crypto Assets and Networks.

Paul Atkins, who took office in April, has further consolidated this shift in attitude. Atkins served as co-chair of the Token Alliance of the Digital Chamber as early as 2017, actively promoting the establishment of industry standards for token issuance and trading. It has been reported that Atkins holds approximately $6 million in encryption-related assets.

After taking office, Atkins has repeatedly publicly stated a pro-encryption stance, promising to "return to the fundamental mission of promoting rather than suppressing innovation" during his term.

Major Personnel Restructuring in Core Departments

In addition to the change in chairmanship, the SEC's core departments have also undergone several key personnel adjustments. Since the beginning of the year, there have been changes in 10 executive positions, among which at least two newly appointed executives are considered to have experience in the encryption industry.

The new Director of the Investment Management Department, Brian T. Daly, was previously a partner at an international law firm, specializing in areas including digital assets, encryption, and blockchain. The new Director of Trading and Markets, Jamie Selway, served as the global head of institutional markets at a certain encryption company from 2018 to 2019.

These two departments are extremely important within the SEC framework, responsible for regulating investment products and services, as well as the operational rules of market infrastructure. The encryption ETF and the encryption trading environment are directly influenced by these two departments.

In addition, the SEC's crucial "power center" has also undergone a change. Gurbir Grewal, the former director of the enforcement division who had a tough stance on encryption for a long time, left office in October 2024, and after Sanjay Wadhwa took over as acting director, the enforcement力度 has clearly eased. Between February and March of this year, the SEC dropped lawsuits against several well-known encryption companies.

The SEC also launched an employee "buyout program," with more than 500 people ultimately choosing early retirement or resignation, accounting for about 10% of the agency's total staff. This round of "internal slimming" has created space for subsequent restructuring and policy shifts.

Changes in SEC's encryption regulatory rhythm

In terms of regulatory trends, the SEC is adjusting its direction through intensive meetings and policy statements. In the first half of this year, the SEC has held 6 roundtable discussions related to encryption, covering core topics such as regulatory frameworks, custody mechanisms, asset tokenization, and DeFi.

At the regulatory level, the SEC is also actively making progress. On May 30, the SEC released a policy statement regarding PoS network staking activities, clearly stating for the first time that three types of staking behaviors do not constitute a securities offering, providing a clearer compliance path for current encryption staking services.

At the same time, the ETF approval process is also accelerating. On June 11, the SEC required institutions proposing to issue a Solana spot ETF to resubmit revised documents in the short term and promised to complete review feedback quickly.

This series of personnel changes, relaxed rules, and softened attitudes shows that the SEC is re-engaging in dialogue with the encryption industry. Although regulation will not disappear, the future direction of regulation may lean more towards co-building rather than high pressure. Whether this internal transformation can truly usher in a new era friendly to encryption remains to be seen.