Acting SEC Chair Mark T. Uyeda has instructed agency staff to reexamine key regulatory guidance on cryptocurrencies, including foundational documents that have shaped how digital assets are treated under U.S. securities law.
The initiative follows directives from Executive Order 14192, titled “Unleashing Prosperity Through Deregulation,” and reflects recommendations from the Elon Musk led Department of Government Efficiency (DOGE).
Uyeda’s review aims to determine whether certain guidance documents—some long viewed as cornerstones of crypto compliance; should be updated, scaled back, or repealed entirely to reflect the SEC’s evolving direction under the Trump administration.
Among the most consequential items under scrutiny is the 2019 framework interpreting the Howey Test in the context of digital assets. The Howey Test is a legal benchmark used to assess whether an investment qualifies as a security, based on whether profits are expected from the efforts of others.
This 2019 document has served as a critical reference for token issuers and blockchain startups navigating SEC oversight. However, its relevance is now being questioned as the digital asset ecosystem matures and new innovations such as memecoins and decentralized protocols—challenge traditional definitions of securities. In recent comments, SEC officials have suggested that some assets, particularly memecoins, may no longer meet the legal definition of a security due to their lack of centralized issuers or explicit profit expectations.
Also under review is a 2021 staff bulletin that advised caution for investors considering mutual funds with exposure to Bitcoin futures. The original document highlighted risks such as price manipulation, liquidity constraints, and market immaturity. But much has changed since its release: spot Bitcoin and Ethereum ETFs have since been approved and have attracted billions in institutional capital, prompting questions about whether the original warnings remain valid.
Uyeda Expands SEC Review to Post-Crisis Crypto Guidance
Uyeda’s directive extends beyond legacy rules to encompass several advisories issued in response to the crypto market crashes of 2022. Among them is a bulletin released shortly after the collapse of FTX, urging public companies with crypto exposure to provide detailed disclosures on liquidity, custodial risk, regulatory pressures, and reputational harm.
These statements, though reactive to crisis conditions, continue to influence corporate reporting practices. Uyeda’s review suggests the SEC may now consider whether such crisis-era guidance aligns with the agency’s current priorities; or whether it inadvertently stifles innovation in an industry showing signs of stabilization and mainstream adoption.
The timing of this internal policy reassessment is especially significant given that the SEC is currently undergoing a major workforce reduction.
According to recent reporting by Reuters, over 600 agency staff, more than 12% of the Commission’s workforce, have accepted voluntary buyouts and are in the process of exiting the agency.
This transition may have a notable impact on the scope, pace, and tone of enforcement moving forward.
Uyeda’s efforts to modernize the SEC’s crypto regulatory framework reflect a broader agenda to align outdated or reactionary guidance with long-term strategic goals, particularly as crypto continues to evolve beyond its early experimental phase.
Quick Facts
- Acting SEC Chair Mark Uyeda has launched a review of crypto-related guidance, including the 2019 framework applying the Howey Test to digital assets.
- The agency is also reconsidering prior advisories on Bitcoin futures, public company disclosures, and memecoin classification.
- More than 600 SEC staff are leaving via voluntary buyouts, potentially affecting enforcement bandwidth.
- These actions reflect a broader shift toward deregulation and a more supportive posture toward digital asset innovation in the U.S.
