The SEC's regulatory style is quietly shifting, and the encryption industry is welcoming new opportunities

In early 2025, the U.S. Securities and Exchange Commission (SEC) underwent a significant change in its regulatory strategy in the encryption field. With the new leadership in place, the SEC began to experiment with "dialogue-based governance," establishing dedicated task forces, terminating multiple investigations, and initiating industry roundtable discussions. Do these series of measures indicate that the SEC is shifting from strict regulation to a more collaborative approach? Before the new chair officially takes office, can these adjustments drive the encryption industry toward a new phase of compliance and innovation?

Key Recent Actions by the SEC: From Enforcement to Dialogue

Since the new leadership took office in January 2025, the SEC has made significant adjustments to its regulatory strategy in the encryption field. The SEC has specifically established a cryptocurrency task force led by Hester Peirce, symbolizing a major shift in regulatory policy. The task force is expected to prioritize defining which cryptocurrency assets qualify as "securities" and explore legal channels for token issuance. This move is likely to bring a clearer regulatory framework to the market and attract more traditional financial institutions into the encryption field.

The SEC also announced that it will hold four new roundtable meetings from April to June 2025, covering topics such as encryption trading, custody, asset tokenization, and DeFi. These meetings will be open to the public, and Hester Peirce referred to them as "a spring sprint for clarity in crypto regulation," indicating that the SEC is attempting to establish clearer rules through industry dialogue.

It is worth noting that the frequency of the term "blockchain" used in official SEC documents reached a historical high in February 2025, reflecting a significant increase in its attention to the encryption industry.

SEC Terminates Multiple Encryption Case Investigations, Releases Easing Signal

As of March 2025, the SEC's enforcement dynamics in the cryptocurrency field have indeed undergone some adjustments, with certain cases ending in settlements, dismissals, or the termination of investigations, indicating a certain degree of regulatory easing.

• In January 2025, the SEC concluded its investigation into the Hinman document-related case and did not make a new ruling on whether Ethereum is considered a security.

• In February 2025, the SEC officially terminated further investigations into a certain trading platform and did not impose additional penalties.

• The SEC has dismissed some lawsuits against NFT issuers, retaining enforcement only against projects that clearly promise returns.

• In March 2025, the SEC reached a settlement with a certain DeFi protocol, where the protocol agreed to register some functions and pay a small fine.

• The SEC has dropped its lawsuit against the Tornado Cash developers and is shifting to collaborate with the Treasury (OFAC) on regulation.

• In March 2025, the SEC terminated its investigation into Immutable and related parties, finding no violations.

• In March 2025, Ripple reached a preliminary settlement agreement with the SEC, and the SEC agreed to refund part of the fine.

Future Outlook: Policy Direction After the New Chairman Takes Office

Currently, the SEC is still being led by an acting chair, who has adjusted some encryption policies, such as pausing the requirement for cryptocurrency companies to register as trading systems and pushing for the establishment of a special task force for cryptocurrency.

The new presidential candidate has extensive experience in financial regulation and supports innovation and the development of decentralized assets. However, he currently faces allegations of conflicts of interest. His investments in the encryption field and family assets have raised concerns about the fairness of regulation, but he has promised that if appointed, he will resign from his current position and sell related equity.

The nomination of the new chairman is still in the Senate hearing stage, with a hearing scheduled for March 27, 2025, during which he will need to respond to inquiries regarding his connections with the encryption industry.

If the new chairman officially takes office, it may promote the legislative process related to it, reduce regulatory overlap, and clarify the division criteria between securities and non-securities tokens.

Conclusion

The recent adjustments by the SEC mark its attempt to transition from "confrontational regulation" to "dialogue-based governance." If the SEC can continuously promote a transparent and reasonable regulatory framework, prioritizing the formulation of specific rules for stablecoins, staking services, and DeFi protocols, the United States may become an important part of the global encryption innovation center. However, if policies fluctuate, encryption projects may still choose to move to regions with more favorable regulations. In any case, 2025 will be a critical turning point in the relationship between the SEC and the encryption industry.