SEC Regulatory Style Shift: From Enforcement-Led to Dialogic Governance

In early 2025, the U.S. Securities and Exchange Commission (SEC) made a significant shift in its regulatory approach to the cryptocurrency space. With the new leadership in place, the SEC began adopting a more open and collaborative attitude. This change has sparked new expectations within the industry regarding the future regulatory environment.

SEC's New Initiatives

After taking office, Acting Chair Mark Uyeda established a dedicated crypto task force at the SEC. Led by Hester Peirce, this group aims to clarify the regulatory positioning of crypto assets and explore legitimate avenues for token issuance. This initiative is expected to bring a clearer regulatory framework to the market and may attract more traditional financial institutions into the crypto space.

The SEC also announced that it will hold four roundtable meetings in the second quarter of 2025, covering key topics such as crypto trading, custody, asset tokenization, and DeFi. These meetings will be open to the public, reflecting the SEC's willingness to engage in dialogue with the industry.

It is worth noting that the frequency of the term "blockchain" in SEC filings reached an all-time high in February 2025, reflecting a significant increase in its attention to the cryptocurrency industry.

Softening of Law Enforcement Attitude

Recently, the SEC has shown a relatively mild attitude in several crypto-related cases:

• Terminated the investigation into whether Ethereum is a security.
• Concluded further investigation into the staking services of a certain trading platform
• Revoked the lawsuit of some NFT issuers
• Reached a settlement with a certain DeFi protocol, only requiring registration of some functions and payment of a small fine.
• Abandoned the lawsuit against privacy tool developers
• The investigation into Immutable has been terminated, with no violations found.
• Reached a preliminary settlement agreement with Ripple, refunding most of the fines.

These cases indicate that the SEC is trying to promote industry compliance through dialogue and negotiation, rather than solely relying on enforcement measures.

Future Outlook

Currently, the SEC is still led by acting chair Mark Uyeda. He has adjusted some cryptocurrency policies, such as pausing the plan to require cryptocurrency companies to register as trading systems, and has pushed for the establishment of a special cryptocurrency working group.

Paul Atkins, as a candidate for SEC chairman, is viewed as a potential signal for promoting crypto-friendly policies. However, he faces questions regarding conflicts of interest and will need to respond to related issues at the Senate hearing.

If Atkins successfully takes office, he is expected to promote the legislative process related to clearly defining the distinction between securities and non-securities tokens, and reducing regulatory overlap.

Conclusion

The recent shift of the SEC marks its attempt to transition from "adversarial regulation" to "dialogue-based governance." If it can continue to promote a transparent and reasonable regulatory framework, prioritizing the development of specific rules in areas such as stablecoins, staking services, and DeFi protocols, the United States is expected to become a significant center for global crypto innovation. However, the stability and consistency of policies will be key factors determining the success of this transition. 2025 will undoubtedly become an important turning point in the relationship between the SEC and the crypto industry.