6-4-2025 – The Securities and Exchange Commission (SEC) has embarked upon a comprehensive review of its cryptocurrency-related directives, as announced by Acting Chair Mark T. Uyeda during the weekend.
The sweeping examination, prompted by Executive Order 14192’s deregulatory agenda and recommendations from the Department of Government Efficiency (DOGE), targets several crucial cryptocurrency investment guidelines and their interplay with securities legislation.
Amidst a notable exodus of SEC personnel, with more than 600 staff members—representing approximately 12% of the workforce—accepting voluntary redundancy packages, the timing of this regulatory reassessment has raised eyebrows in financial circles.
Central to the review is the landmark 2019 guidance on digital asset classification under the Howey test, which has served as a cornerstone for determining whether cryptocurrencies constitute securities. Recent interpretations have notably exempted memecoins from securities regulations, marking a significant shift in regulatory approach.
The scrutiny extends to a pivotal 2021 advisory concerning Bitcoin futures investments through mutual funds. Despite earlier reservations about market maturity, spot Bitcoin and Ethereum exchange-traded funds have since flourished, accumulating substantial valuations.
In the wake of prominent cryptocurrency collapses, the commission’s late 2022 disclosure guidelines—emphasising transparency regarding crypto market exposure, custody arrangements, and associated risks—will also undergo fresh examination.
The comprehensive review encompasses additional documentation, including a February 2021 Risk Alert on digital asset trading hazards and guidance regarding Wyoming’s pioneering stance on digital asset custody by state-chartered trust companies. Pandemic-related advisories are also slated for reassessment.
