In a significant move, Mark Uyeda, the acting head of the US Securities and Exchange Commission (SEC), has instructed his team to review several key regulatory statements concerning crypto. This includes guidance on figuring out when digital assets are considered investment contracts, and how Bitcoin futures are treated under the Investment Company Act.

The review isn’t limited to just those, though. Also on the list are crypto market disclosure letters, how the SEC oversees digital asset securities, and custody standards linked to Wyoming’s no-action letter, according to an announcement on the SEC’s X account from April 5.

Statement from Acting Chairman Mark Uyeda: Pursuant to Executive Order 14192, Unleashing Prosperity Through Deregulation, together with recommendations from DOGE, I have requested Securities and Exchange Commission staff promptly to review the following staff statements.

— U.S. Securities and Exchange Commission (@SECGov) April 5, 2025

This move is all happening under the umbrella of Executive Order 14192, officially called “Unleashing Prosperity Through Deregulation,” and based on suggestions from the Department of Government Efficiency (DOGE).

Issued by President Trump on January 31, this executive order is designed to lessen the regulatory load on businesses and individuals across the United States. Essentially, it’s a push for federal agencies to cut back on rules that might be holding back innovation or economic growth.

The order is pretty ambitious when it comes to deregulation, featuring a “10-for-1” rule. This means for every new regulation proposed by federal agencies, they have to get rid of at least ten existing ones. It’s definitely a step up from the “2-for-1” policy used in Trump’s first term.

What could this mean for crypto companies? Well, the SEC staff’s review could pave the way for simpler, clearer rules, or potentially even reduced oversight, depending on what they find.

As Uyeda himself explained, “The purpose of this review is to identify staff statements that should be modified or rescinded consistent with current agency priorities.”

Looking ahead under the second Trump administration, big changes are expected for the SEC’s priorities and how it approaches regulation, especially in the crypto space. Many anticipate a more crypto-friendly stance compared to previous administrations.

Interestingly, in recent weeks, we’ve already seen signs of a shift. The SEC has dropped pending cases against some major players in crypto, including Coinbase, Consensys, and Kraken, just to name a few.

SEC Clarifies Stablecoin Status: Not Securities

And it’s not just about reviewing old rules. The SEC is also actively working to clear up the legal gray area around different crypto assets, specifically figuring out which ones should be classified as securities and which shouldn’t.

Just recently, on April 4th, the SEC made a noteworthy announcement: ‘covered’ stablecoins, like Tether’s USDT and Circle’s USDC, are not going to be considered securities.

These are the stablecoins that are fully backed by traditional currency reserves or very liquid assets and can be redeemed 1:1 for US dollars. The good news for these? They won’t be subject to transaction reporting requirements with the SEC.

Now, this doesn’t apply to everyone. Algorithmic stablecoins, which rely on software to maintain their dollar value, are excluded. And there are also some rules for those ‘covered’ stablecoin issuers: they can’t mix their reserves with their operating funds or offer yields to people holding the tokens.

Looking further ahead, there’s potential for an even more welcoming approach to digital assets, especially with pro-innovation advocate Paul Atkins possibly poised to lead the SEC.

Market watchers are certainly hoping that if Atkins takes the helm, we could see more approvals for those highly anticipated digital asset ETFs (Exchange Traded Funds).

And things are moving in that direction – the Senate Banking Committee just approved Paul Atkins’ nomination for US SEC Chair on Thursday, sending it to a full Senate vote next.

If confirmed by the full Senate, Atkins could step into the role of SEC Chair pretty soon.

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