The SEC has been getting a makeover, and it's giving some folks Wall Street 2008 flashbacks.

Under acting Chair Mark Uyeda, they've just announced that every crypto investigation now needs commissioner-level approval.

No more rogue aspects of the agency chasing down tokens or Web3 projects… but is that a good thing?

The New Rules

Want to issue a subpoena? Talk to the commissioners. 

Need to demand testimony? Commissioners. 

Starting a formal investigation? You guessed it – commissioners.

The days of staff attorneys running wild with investigations are officially over, as the SEC is now centralizing power as it pertains to Web3 and blockchain investigations.

Critics are losing it over the shift in policy

Former SEC lawyer Marc Fagel is invoking the ghost of Bernie Madoff, claiming that the change will lead to a plethora of wrongdoings and a surge in ill-gotten gains for criminals.

However, supporters are calling it a win against "rogue attacks" on crypto that have defined the agency for the last four years.

The New Sheriff(s) In Town

Mark Uyeda is officially running the show at the SEC, and he's been busy undoing everything Gary Gensler put in place

Remember, SAB 121 is officially undone with the passage of SAB 122, meaning banks can officially custody crypto for their clients without counting it as debt. 

And Trump's pick for permanent chair, Paul Atkins, is waiting in the wings, ready to help the commander-in-chief make crypto great again… whatever that means.

Under Biden, the SEC was ruling by enforcement, having brought up a staggering 1,784 cases forward in 2023.

Now they’re slowing things down a bit, and with regulatory clarity finally coming soon, it’s a sight to behold. 

The previous SEC even got called "arbitrary" by the Third Circuit for playing games with Coinbase.

The Market Reaction

XRP holders are loving it, pumping 20% on the news.

But some folks are less excited, expressing worry that it’s just setting us up for the next big crisis.

The courts are demanding clear crypto rules, and the SEC is backing down while Europe has been making headway by banning algo stablecoins.

Talk about a role reversal.

Trump promised to go easy on crypto, and it looks like the SEC is delivering.

But the million-dollar question is, will the agency be able to keep up with the volume of actual fraud if it bottlenecks its investigation process?

Just maybe don't expect quick action on the next crypto scandal.