# SEC Shifts Toward Collaborative Approach with Industry Under Acting Chair Mark Uyeda in Early 2025

The U.S. Securities and Exchange Commission (SEC) is transitioning from an enforcement-centric approach to a more collaborative stance with the industry under Acting Chair Mark Uyeda, effective early 2025. This strategic pivot is not confined to the United States alone. As a benchmark for global regulation, the SEC’s decisions are prompting major Asian nations such as Japan, South Korea, Singapore, and Hong Kong to expedite their regulatory reforms.

With Paul Atkins expected to take the helm officially, the SEC is anticipated to focus on establishing a clear regulatory framework, potentially revitalizing innovation in the cryptocurrency sector.

# Introduction

The U.S. Securities and Exchange Commission (SEC) has served as a “lighthouse” in global cryptocurrency regulation. When the SEC classifies a specific token as a security or takes legal action against a firm, the impact extends beyond U.S. markets, sending strong signals globally.

Recent changes in the SEC’s approach have become evident. Under former Chair Gary Gensler, the SEC largely depended on litigation without clear guidelines, employing a “Regulation by Enforcement” strategy. However, with Mark Uyeda stepping in as Acting Chair in early 2025, the SEC has shifted toward a more cooperative model. Key lawsuits have been withdrawn, and the controversial SAB 121 rule has been repealed. Additionally, the establishment of a cryptocurrency task force (TF) aims to create transparent guidelines and a clear regulatory framework, signifying a major policy shift.

This change in the SEC’s stance signifies the beginning of a new chapter for the U.S. cryptocurrency industry. This report examines the potential impact of these changes on the Asian market.

# Evolution of SEC’s Cryptocurrency Regulation

From 2021 to 2024, the SEC adhered to an enforcement-centric regulatory strategy without issuing clear guidelines. Under Gary Gensler’s leadership, questions about the sustainability of the cryptocurrency industry led to stringent measures aimed at investor protection.

Notably, Ripple (XRP) faced securities law violations, and Kraken’s staking service was deemed an unregistered security, resulting in a $30 million fine and cessation of service. Other firms like Coinbase, Binance, ConsenSys, and Uniswap were also investigated. This approach clearly communicated that non-compliance with existing securities laws would incur penalties, prompting several firms to cease U.S. operations or relocate their legal bases to regulation-friendly regions like Abu Dhabi.

However, following Donald Trump’s reelection in late 2024, regulatory sentiments at the SEC began shifting. Trump nominated Paul Atkins, a pro-cryptocurrency advocate, as the next SEC Chair, and in early 2025, Mark Uyeda was appointed as Acting Chair. Uyeda, known for his cryptocurrency-friendly stance, had been an SEC Commissioner since 2022.

Under Uyeda’s leadership, the SEC has adopted a more collaborative approach. In January 2025, the SEC established a cryptocurrency TF led by Commissioner Hester Peirce, a known cryptocurrency advocate.

One key measure was the repeal of SAB 121, which had mandated that cryptocurrency custodial assets be treated as corporate liabilities, hindering institutional market participation. This reversal indicates that the SEC is responding to industry concerns and moving away from unilateral regulatory tactics.

Although the SEC has not yet formalized an industry-wide regulatory framework, staff statements on stablecoins and meme coins have begun to outline policy directions. The cryptocurrency TF is also opening communication channels with industry players, discussing a more flexible and realistic regulatory system, differentiating it from the previous enforcement-heavy approach.

# Impact of SEC Regulatory Shift on Asian Markets

## Retail Investors: Shifting Mindshare Towards the U.S.

While the SEC’s regulatory shift impacts global markets, its direct effects on Asian retail investors are limited. Most invest within their local regulatory frameworks. Integrating with U.S.-based cryptocurrency exchanges involves complexities, such as linking with domestic bank accounts and additional costs from transferring funds through local exchanges. These factors illustrate the constraints on the direct impact of U.S. regulatory changes on Asian retail investors.

However, indirect impacts are evident. Following Trump’s reelection and anticipated regulatory leniency in the U.S., some Asian investors are viewing “U.S.-based projects” as lucrative opportunities. Although their investment activities comply with local regulations, their market sentiment is increasingly U.S.-centric. This trend implies that Asian retail investors are becoming more influenced by U.S. market dynamics, possibly reacting more to U.S. regulations than their domestic policies in the future.

## Venture Capital: Tapping into “Make America Greater”

Gensler’s stringent regulatory enforcement instilled conservative investment sentiments among U.S. cryptocurrency venture capitalists. According to Galaxy Research, funding for U.S.-based cryptocurrency firms represented 46.2% of total investments in Q4 2024, slightly declining from the previous quarter. Conversely, investment in Hong Kong surged from 4% to 17.4%, indicating capital movement towards clearer regulatory environments.

Amid the shift toward pro-cryptocurrency leadership at the SEC and clearer regulatory frameworks, the U.S. cryptocurrency market is regaining investor confidence. Trump’s “America First” agenda further reinforces a U.S.-focused investment strategy. For instance, a16z recently withdrew from their U.K. office to concentrate on the U.S. market, planning over $20 billion in investments in U.S. tech firms, including those in the cryptocurrency sector.

Asian nations are responding swiftly, aiming to strengthen their competitive edge. Hong Kong, Singapore, and Japan have already established regulatory foundations, with the SEC’s changes accelerating their policy refinements and market expansions. While U.S.-centric investment flows may dominate in the short term, ongoing infrastructure improvements and regulatory advancements will likely enable Asia to maintain its competitiveness.

## Regulatory Agencies: SEC’s Role as a Regulatory Benchmark

The SEC’s decisions significantly influence Asian regulatory agencies. For instance, the SEC’s early 2024 approval of a Bitcoin ETF set a precedent for similar approvals in Asia, evidenced by Hong Kong’s approval of a Bitcoin spot ETF three months later.

The SEC’s regulatory shift is accelerating regulatory reforms across Asia. Japan, already with a stablecoin framework, saw SBI secure the first EPISP license in March, prompting the Financial Services Agency to seek legislative changes classifying cryptocurrencies as financial instruments. South Korea is also adapting, gradually allowing corporate cryptocurrency transactions. Southeast Asian nations, like Malaysia and Vietnam, are re-examining their frameworks.

Overall, the SEC’s policy changes are steering Asia towards clearer regulations and industrial acceptance. Asian regulators are now focusing on fostering market growth and enhancing competitiveness, rather than merely enforcing restrictions.

# Conclusion

From 2021 to 2024, the SEC maintained a stringent enforcement-focused regulatory stance. However, 2025 marks a shift towards a collaborative approach with pro-cryptocurrency personnel in key positions, starting under Acting Chair Mark Uyeda and likely continuing with Paul Atkins as official Chair.

Internal dissent remains, with figures like Commissioner Caroline Crenshaw criticizing the SEC’s pro-cryptocurrency turn and questioning aspects of the TF’s statements. Nonetheless, U.S. cryptocurrency policy is increasingly shaped by President Trump, cryptocurrency czar David Sacks, and Atkins, emphasizing regulation as a foundation for industry growth rather than mere deterrent.

Asia is promptly adapting to this trend, with major nations accelerating regulatory reforms, indicating the onset of the next growth phase. Clear regulations are poised to attract capital and spur innovation, transforming regulation from a barrier to a launchpad for new industry paradigms.

*The above article is a full text from “The Shift in SEC’s Approach: From Strict Regulation to Collaborative Engagement,” published by Global Web3 research institution Tiger Research, a partner of BlockMedia. The report is available on the Tiger Research official site.