Digital Chamber Proposes Day 1 Reforms for New SEC Chair, Including Rescinding Hinman Speech and SAB 121

• The Digital Chamber of Commerce proposes a 90-day action plan for SEC reforms to support the crypto sector.
• Key proposals include rescinding the Hinman speech, SAB 121, and halting non-fraud-related enforcement actions.
• The plan seeks to establish clearer, innovation-friendly regulations for digital assets under the new administration.

As the U.S. prepares for a new administration under President-elect Donald Trump, the digital asset industry is seizing the opportunity to advocate for a much-needed reset in its relationship with the Securities and Exchange Commission (SEC).

The Digital Chamber of Commerce (TDC), through its Token Alliance Leadership Committee, has laid out a comprehensive 90-day action plan to foster transparency, trust, and clear regulatory guidelines for the crypto sector.

Day 1 Priorities: Rescinding Outdated Rules

The TDC’s roadmap starts with urgent reforms. It calls for the rescission of the SEC’s 2019 guidance on digital assets as “investment contracts,” which has been widely criticized for creating confusion.

Additionally, the 2018 Hinman speech, which led to controversy by favoring some assets over others, should be formally disavowed to prevent further market disruption.

Other proposals include:

• Suspending crypto-related enforcement actions,  Wells notices, and litigation cases that do not involve fraud or investor harm.
• Reviewing Staff Accounting Bulletin (SAB) 121, which forces custodians to hold crypto assets on their balance sheets.
• Halting proposed amendments to Rule 3b-16, which would classify decentralized finance (DeFi) protocols as “exchanges.”

A Call for Sensible Crypto Regulation

The Digital Chamber’s agenda reflects growing frustration with the SEC’s historical approach of “regulation by enforcement.” Paul Atkins, the President-elect’s nominee for SEC Chair and a known advocate for pro-crypto policies, is expected to work closely with Commissioners Hester Peirce and Mark Uyeda to deliver on these reforms.

Both commissioners have openly criticized the SEC’s stance on digital assets, suggesting a potential transformation in how the agency engages with the sector going forward.

In addition to halting aggressive enforcement actions, the TDC advocates for introducing bespoke rulemaking for digital assets and issuing no-action letters to provide much-needed clarity for market participants.

Industry Optimism for Regulatory Progress

Notably, the Token Alliance reported a productive meeting with the staff of Commissioners Peirce and Uyeda, highlighting their willingness to consider ongoing industry input. This collaborative approach could mark a turning point in the SEC’s relationship with the crypto community.

With a pro-crypto administration taking over, the next 90 days could shape the future of U.S. crypto regulations and pave the way for more constructive engagement between the SEC and the industry.