As President-elect Donald Trump prepares to take office, top Republican officials at the U.S. Securities and Exchange Commission (SEC) are gearing up to overhaul the agency’s cryptocurrency policies, according to three individuals briefed on the matter.

Among the measures under consideration by SEC commissioners Hester Peirce and Mark Uyeda are clarifying when cryptocurrencies should be considered securities and reviewing ongoing crypto enforcement cases. These actions could begin as early as next week, two of the sources indicated.

According to a report from Reuters, Paul Atkins, Trump's pick for SEC chair, is expected to end the crypto crackdown led by outgoing SEC chair Gary Gensler. However, the Senate must confirm Atkins before he can formally take the role. Gensler, who pursued an aggressive approach to regulating the crypto industry, is set to step down on Jan. 20, when Trump assumes office.

Peirce and Uyeda, both known for their pro-crypto stances, will hold a majority among politically appointed SEC commissioners after Gensler’s departure, potentially allowing them to implement changes while Atkins awaits confirmation.‍

A Shift in Crypto Policy?

Peirce, Uyeda, and Atkins have long-standing relationships, having worked together during Atkins’ tenure at the SEC from 2002 to 2008. Sources familiar with their discussions indicated that the trio has already explored potential crypto policy changes.

Their plans may include initiating a rulemaking process to clarify when crypto assets are considered securities and halting some enforcement actions currently in court. The sources noted that enforcement cases not involving fraud may be frozen and, in some instances, withdrawn.

Under Gensler, the SEC brought at least 83 crypto-related enforcement actions, including lawsuits against major companies like Coinbase and Kraken. Gensler has maintained that many crypto tokens are securities and must adhere to SEC regulations. However, industry players argue that the classification of tokens as securities remains unclear and have called for explicit rules.

Peirce and Uyeda are expected to seek public and industry input as they begin drafting new regulations, sources said. Additionally, the SEC is likely to rescind controversial accounting guidance that has discouraged publicly listed companies from holding cryptocurrencies for third parties.‍

Trump’s Executive Orders

President-elect Trump has indicated his support for the crypto industry, courting campaign donations with promises to be a “crypto president.” He is expected to issue executive orders urging regulators to reassess their crypto policies, according to prior reports from Reuters.

Bitcoin’s price surged past $100,000 for the first time in December, driven by optimism about the incoming administration’s pro-crypto stance.

While the SEC’s Republican leadership is poised to take swift action, regulatory changes and enforcement case resolutions could take months or longer. Legal experts caution that dismissing enforcement actions, even those not involving fraud, could set a politically charged precedent.