SEC under Trump would ‘vigorously pursue’ crypto regulation – former regulator says

Former SEC Division of Enforcement Assistant Director Jennifer Lee stated on May 2 that the Securities and Exchange Commission (SEC) would continue to pursue crypto regulation vigorously if Donald Trump is reelected as President. Lee noted that during Trump’s first presidential term, the SEC brought transparency and regulation to the crypto industry. She predicted that the SEC would further define its jurisdiction over the industry if Trump serves a second term. While the SEC under Trump has been consistent in determining whether specific cryptocurrencies fall within its scope, the extent of its authority remains uncertain. Lee did not provide specific details on the SEC’s actions during Trump’s first term. However, former SEC chair Jay Clayton did assert the SEC’s oversight over certain crypto sales in 2018, including considering Initial Coin Offerings (ICOs) as securities. Some other experts have suggested that the SEC’s approach to crypto regulation may soften under a Trump administration, citing Trump’s significant crypto holdings and the potential to attract crypto-supporting voters. Nevertheless, a change in the presidential administration could also impact SEC leadership, as SEC chairs typically resign during administration changes. As such, the current SEC chair Gary Gensler may resign if Trump is reelected. The outcome of the US presidential election is uncertain, with Trump and Biden having equal odds of winning according to forecasts.