- Katherine Dowling says that the SEC is experiencing a period of uncertainty
- XRP and SOL need further regulatory clarity
- DOGE may have a clearer path to ETF approval
In January 2025, the US Securities and Exchange Commission (SEC) underwent significant leadership changes and initiated new regulatory approaches, particularly concerning cryptocurrency.
Last month, Gary Gensler stepped down as SEC Chair, while US President Donald Trump appointed Mark T. Uyeda as Acting Chairman, with plans to nominate Paul Atkins as the permanent Chair. Atkins previously served as an SEC Commissioner from 2002 to 2008.
Katherine Dowling, general counsel of Bitwise shared her views about the whole situation and the surge in ETF filings.
She said that the SEC is seeing through a period of uncertainty as it awaits the confirmation of its new chair and that the agency is seemingly awaiting directives on handling ongoing litigations and regulatory matters.
New Initiatives and the Path to Clarity
Latest moves—like launching a new SEC crypto task force and the conclusion of Staff Accounting Bulletin 121 (SAB 121)—hints at a shift towards a more collaborative and clear regulatory framework for digital assets.
Still, Dowling stressed the need for definite guidance, especially concerning assets like XRP and SOL, which have faced classification challenges as securities.
She noted that assets not classified as securities, like DOGE, may have a clearer path to ETF approval. For assets like XRP and SOL, further regulatory clarity is necessary before such financial products can move forward.
Related: US Crypto Czar Examines New Strategic Bitcoin Reserve ‘Potential’
Crypto Task Force
On January 21, 2025, Acting Chairman Uyeda announced the creation of a crypto task force led by Commissioner Hester Peirce, known for her pro-crypto stance. The task force aims to develop a comprehensive and clear regulatory framework for crypto assets, moving away from the prior “regulation-by-enforcement” approach.
Its objectives include setting definite guidelines, offering practical routes for crypto entities to register, developing sound disclosure rules, and using enforcement resources wisely.
The task force will work with Congress, federal agencies like the Commodity Futures Trading Commission (CFTC), and international counterparts to achieve these goals.
The crypto industry has welcomed these developments, viewing them as a shift towards clearer regulations and away from the previous administration’s stringent enforcement actions.
Related: Bitcoin Jumps Above $100K as Trump Pauses Tariffs, Announces Sovereign Wealth Fund
However, as Dowling pointed out, it’s still unclear how the new SEC leadership will handle assets such as XRP, SOL, and even DOGE, and which of these will get the final ETF approval.
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