- Proposals include revising Rule 3b-16, addressing DeFi platform definitions to reduce compliance burdens on decentralized markets.
- SEC Chair nominee Paul Atkins is positioned to drive formal rulemaking, replacing informal guidance and enforcement-driven policies.
- Token Alliance recommends repealing SAB 121 to eliminate accounting risks for custody providers in the digital asset sector.
As the United States prepares for President-elect Donald Trump’s administration, the Token Alliance of the Chamber of Digital Commerce has outlined a detailed agenda to reshape the Securities and Exchange Commission’s (SEC) approach to digital asset regulation .
The priorities, presented during meetings with SEC Commissioners Hester Peirce and Mark Uyeda, aim to establish clear, transparent, and cooperative regulatory frameworks for the digital asset industry.
🚨NEW: At a meeting with staffers for @SECGov commissioners @HesterPeirce and Mark Uyeda this week, the @DigitalChamber ’s Token Alliance included denouncing the 2018 #Hinman speech as a Day 1 priority for the Corporation Finance division, citing its lack of relevance to the Howey… pic.twitter.com/5RACe4vBNL
— Eleanor Terrett (@EleanorTerrett) December 18, 2024
The proposed changes include repealing the 2019 framework for “investment contracts”, which the Token Alliance described as overly broad and impractical. This framework, used to assess whether digital assets qualify as securities, has been criticized for creating uncertainty and stifling innovation.
Additionally, the Alliance recommends withdrawing the proposed amendments to Rule 3b-16, which seek to expand the definition of “exchange platforms” to include decentralized finance ( DeFi ) markets. The Alliance argues that these amendments may impose unrealistic compliance burdens on emerging DeFi technologies.
The agenda also calls for an immediate review of ongoing SEC investigations , Wells notices, and litigation cases involving digital assets. By addressing these matters, the Alliance hopes to reset the SEC’s historically contentious relationship with the crypto asset industry.
Another key proposal is to reconsider custodial protection rules, including the removal of state-chartered banks and trusts as qualified custodians, a move that could undermine institutional confidence in crypto custody solutions.
One of the most pressing items is the repeal of SAB 121, an accounting rule that requires custody providers to list client assets on their balance sheets. The Alliance suggests that this rule introduces unnecessary risks and accounting complications for digital asset firms.
President-elect Trump’s nominee for SEC Chair, Paul Atkins, alongside Commissioners Peirce and Uyeda, are positioned to assess and address these concerns.
The Token Alliance emphasized the importance of replacing outdated policies, informal guidance, and enforcement-driven regulation with formal rulemaking and actionable no-action letters.
The proposed timeline for these changes spans the first 90 days of the new administration. The Alliance expressed optimism about the dialogue during the meeting, highlighting a shared willingness to rebuild trust between the SEC and the global digital asset community.
