TechFlow news, on February 25, according to Jinshi Data, U.S. regulatory expert Amy Lynch predicted that the SEC may redefine the classification of cryptocurrencies, with most tokens likely to be categorized as commodities, thus falling outside the SEC's jurisdiction.
The SEC's lawsuit against Ripple Labs over its issuance of the XRP token has become a key indicator. Previously, the SEC accused Ripple of issuing securities without registration. Importantly, this case was seen as setting a legal precedent for classifying most cryptocurrencies as securities under SEC oversight. The case has progressed slowly, and last October the SEC appealed a prior court ruling. With regulatory thinking shifting, whether the SEC will continue its appeal has become a focal point.
More broadly, enforcement of securities laws could also be "severely constrained," partly due to the influence of the Department of Government Efficiency (DOGE). Lynch speculated that DOGE might scrutinize the SEC’s internal operations more closely and attempt to streamline the agency. "I think they'll take time to develop their own agenda," Lynch said regarding the SEC, "and pending cases based on positions held by former staff will ultimately be dropped."
Lynch warned that uncertainty in the legislative process might trigger short-term selling pressure, but would strengthen the fundamental value in the long run. She noted that cryptocurrency prices have previously declined due to changes in the legal framework.
