As Congress talks about a major crypto bill, U.S. regulatory agencies are already adapting to the changing landscape for digital assets. While the Securities and Exchange Commission (SEC) prepares for a crypto roundtable, other financial watchdogs are taking steps to update policies affecting the industry.

Key Insights:

• Despite the emphasis on legislative developments, regulatory bodies are already implementing significant changes.
• The upcoming SEC roundtable is expected to provide clarity on digital asset regulations.

In an environment where the crypto sector is closely watching policy changes at the federal level, regulators are taking active measures to reshape the current framework. The SEC, along with other agencies, has been reassessing policies that had previously aimed to limit the growth of digital assets.

One significant change involves the SEC’s approach towards previous enforcement policies that hindered various cryptocurrency projects. As the regulatory landscape evolves, communications from the SEC indicate a willingness to facilitate innovation rather than hinder it. Adam Pollet, a securities lawyer at Eversheds Sutherland, summarized the situation as a need to clean the slate for new developments in the crypto space.

“They wanted to sort of clean the slate,” Pollet remarked, interpreting signals from the SEC to encourage innovation without the threat of hindrance.

Additionally, the SEC has shifted towards defining its approach to various digital tokens, moving away from prior statements regarding their classifications as unregistered securities. This shift leaves some ambiguity in the regulatory approach as active engagement with stakeholders is expected to build a more comprehensive understanding of digital asset classifications.