Can SEC's "conversational governance" energize the crypto community before its official leadership is appointed?
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Can SEC's "conversational governance" energize the crypto community before its official leadership is appointed?
The SEC's adjustments over the past three months mark an attempt to shift from "adversarial regulation" to "dialogue-based governance."
Navigating Web3 tides with focused insightsAuthor: 0x9999in1, MetaEra
In the first quarter of 2025, the U.S. Securities and Exchange Commission (SEC) quietly shifted its regulatory approach toward the crypto sector. With the end of Gary Gensler's era, the SEC under Acting Chair Mark Uyeda has begun experimenting with "dialogue-based governance"—establishing a Crypto Task Force, closing multiple crypto investigations, and launching a series of industry roundtable discussions. Do these moves signal a shift from adversarial enforcement to a more collaborative regulatory model? And before a new permanent chair is confirmed, can this transitional adjustment truly steer the crypto industry toward a new phase balancing compliance and innovation?
SEC’s Key Moves Over the Past Three Months: From Enforcement-Driven to Dialogue-Based Governance
Since Acting Chair Mark Uyeda took office in January 2025, the SEC has made noticeable adjustments to its crypto regulatory strategy, including the deliberate formation of a dedicated Crypto Task Force. Led by Hester Peirce—widely known as the "Crypto Mom"—this task force symbolizes a significant policy pivot. It is expected to prioritize clarifying which digital assets qualify as securities and explore pathways for legally issuing tokens. This could provide the market with a clearer regulatory framework and attract more traditional financial institutions into the crypto space.
Recently, the SEC announced plans to host four new roundtable sessions between April and June 2025, covering topics such as crypto trading, custody, asset tokenization, and DeFi. The scheduled public roundtables are: April 11 – “Tailoring Regulation for Crypto Trading,” April 25 – “Key Issues for Custodians,” May 12 – “Tokenizing Assets and Integrating with Traditional Finance,” and June 6 – “DeFi and the American Spirit.”
Notably, these meetings are open to the public. SEC Commissioner Hester Peirce described them as part of a “Spring Sprint for Regulatory Clarity” in crypto, signaling the commission’s effort to co-develop clearer rules through industry dialogue. On March 25, she publicly stated that the crypto industry needs “clear and reasonable boundaries for regulatory authority,” suggesting future compliance may be advanced through rulemaking rather than litigation.
This shift isn’t limited to forming task forces or hosting roundtables—data further illustrates the change. According to SEC filings, mentions of the term “blockchain” reached an all-time high in February 2025 (over 5,000 instances recorded in the EDGAR database), reflecting a marked increase in the agency’s focus on the crypto industry.
SEC Terminates Multiple Crypto Investigations, Sending Signals of Thawing Relations
As of March 2025, the U.S. Securities and Exchange Commission has indeed adjusted its enforcement posture in the cryptocurrency space, with several cases concluding in settlements, dismissals, or terminated investigations—indicating a degree of regulatory de-escalation.
In January 2025, the SEC closed its investigation into the Hinman documents without issuing a new determination on whether Ethereum qualifies as a security;
Kraken paid $30 million in 2023 to settle charges over its unregistered “staking-as-a-service” offering, with the SEC reserving the right to further investigate. In February 2025, the SEC formally terminated the probe without imposing additional penalties;
The SEC previously accused several NFT issuers (e.g., Impact Theory, Stoner Cats) of violating securities laws, arguing their NFTs constituted investment contracts. In December 2024, the SEC quietly dropped some of these lawsuits, retaining enforcement only against projects with clear profit promises (such as Ponzi-scheme-style NFTs);
The SEC had alleged that an unnamed DeFi protocol evaded securities laws via governance tokens. In March 2025, they reached a settlement—the protocol agreed to register certain functions and pay a modest fine, after which the SEC terminated its investigation;
The SEC once sought to charge Tornado Cash developers under securities law due to the misuse of its privacy tool for money laundering. In January 2025, the SEC dropped the case, opting instead to collaborate with the Treasury Department (OFAC) on oversight;
In March 2025, the SEC terminated its investigation into Immutable and related parties, finding no violations. Robbie Ferguson, President of Immutable, said the decision brings much-needed regulatory clarity to the Web3 gaming industry and is likely to encourage greater institutional investment;
Also in March 2025, Ripple reached a preliminary settlement with the SEC. The SEC agreed to refund $75 million of the $125 million penalty previously ordered by the court, settling for $50 million. In return, Ripple will withdraw its cross-appeal.
Outlook: Policy Direction After the New Chair Takes Office
Currently, the SEC remains under the leadership of Acting Chair Mark Uyeda. During his tenure, he has already adjusted certain crypto policies—for example, pausing plans to require crypto firms to register as trading systems and pushing for the creation of a Crypto Special Task Force—moves widely seen as paving the way for a smoother transition.
Paul Atkins is the SEC chair nominee put forward by Donald Trump, and his nomination is viewed as a strong signal of friendlier regulation for the crypto industry. He brings extensive experience in financial regulation, having previously served at the SEC and supported innovation and decentralized assets. However, Atkins faces scrutiny over potential conflicts of interest. His personal investments in the crypto sector (such as Securitize and Pontoro), along with his family’s total assets exceeding $327 million, have raised concerns about regulatory impartiality. He has pledged that if confirmed, he will resign from current positions and divest relevant holdings.
The nomination of Paul Atkins is currently in the Senate hearing phase. A confirmation hearing is scheduled for March 27, 2025, during which Atkins will face questioning from Democratic senators, including Elizabeth Warren, regarding his ties to the crypto industry.
If confirmed, Paul Atkins could advance legislative initiatives such as the Digital Asset Market Structure Act, reduce regulatory overlap, and establish clearer criteria for distinguishing between securities and non-securities tokens.
Conclusion
The SEC’s recent three-month shift marks an experimental turn from “adversarial regulation” to “dialogue-based governance.” If the SEC continues building transparent and rational regulatory frameworks—prioritizing specific rules for stablecoins, staking services, and DeFi protocols—the United States could become a central hub for global crypto innovation. Conversely, if policies remain inconsistent or reverse course, crypto projects may still choose to relocate to jurisdictions with more favorable regulations. Regardless, 2025 will be a pivotal turning point in the relationship between the SEC and the crypto industry.
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