In February, the Department of Efficiency of the Government (DOGE) began the public input related to the US Securities and Exchange Commission (SEC) – a step suggesting the improvement in the agency.
Since then, the SEC has taken a very little adverse stance towards the Cryptocurrency industry, as per President Trump, as the appointment of crypto-friendly personnel and many cases and investigations in the crypto companies. But Dogge has the ability to implement further changes, and to re -release their approach to digital assets to increase the increasing pressure towards the interest regulators in SEC signals.
In response to the request of public input, Paul Grewal, Chief Legal Officer in the Coinbase – one of the companies No longer facing trial From Sec – Proposed a policy The SEC needs to reimburse legal costs for companies that successfully challenge enforcement efforts. Inspiration for their suggestions is clear, but the impact of Dogi on Crypto will probably be slightly broad.
Joeli Khalili In short WireSEC’s recent retreat from cases is “an initial signal of agency’s intentions to work in the arm with a set of rules to control the crypto transactions and products.”
As things are currently standing, the lack of active guidance of SEC makes it difficult for businesses to plan long -term compliance strategies, and their enforcement action often comes after years of operation, causing companies and their investors to come into contact with unexpected legal risks. Going forward, it will probably change.
Clear compliance on reactive enforcement
Relying on enforcement rather than active guidance has forced companies such as Coinbase, Ripple and Celsius to spend a million in litigation to clarify their regulator standing. But in one Case against loanThe SEC entered the impurities in its statements, from which a court ordered the SEC to cover the company’s legal expenses – preview the suggestion of the coinbase. The ruling suspected the credibility of the agency and highlighted concerns over its enforcement practices.
In the future, hopes to look at regulatory agencies including SEC – under increased pressure to align with the approach of the American Treasury, which prefer clear compliance routes on reactive enforcement. Treasury’s digital asset guidelines are far more structured and address major areas such as tax reporting, compliance and AML measures. Standard definitions of formation of security in Crypto space are necessary to help companies properly in the composition of their products from the beginning.
One balance act
Apart from taking notes from Treasury, SEC can also see IRS for motivation. A “safe port” provision for initial phase projects can encourage innovation, ensuring compliance over time, similar to the proposals discussed earlier by SEC Commissioner Hester Peerus. IRS already embraced this approach, released Temporary transitional relief For crypto taxpayers in January 2025.
The IRS historically rely on voluntary disclosure programs to bring taxpayers to compliance rather than implementing punitive tasks. A similar model should also be applied to crypto regulation.
While some people believe that regulation naturally obstructs innovation, the opposite may be true. The reason for this is that clearly defined guardrils will attract more risk institutions to help enter the ecosystem and increase it. A light regulator touch Is necessary There may be strong backand enforcement and unnecessary friction between regulators and businesses.
Overall, better coordination between SEC, Treasury and IRS will help prevent regulatory conflicts and to streamline compliance obligations for digital asset companies and stakeholders. Treasury’s digital asset guidelines already provide a strong foundation for this type of cross-agency alignment. The current regulator prevents uncertainty and reactive enforcement approach of SEC, while a clear, more coordinated structure will benefit the entire ecosystem.
Bottom line
Amidst the request of Dogi for input, the new administration has been determined for improvements with the aim of making the widespread commitment to the digital asset reform of the digital asset, and the proposal of the coinbase. While we are in the early stages of the new administration, changes are already happening at a shocking speed. It is clear that the effect of Dogi on SEC policies will have an impact – especially to strengthen the case for clear guidelines rather than regulation by enforcement with public discourse on these issues.
Of course, it is worth noting that Dogi’s plans for SEC will proceed beyond the crypto, such as efforts to regulate the industry are extended beyond the SEC. Ultimately, it would be beneficial for the new administration, combined with the Congress, to create a legislative structure for the industry, so the enterprises and individual taxpayers are equally understood what an object, safety and digital property is formed. In other words, we should learn to walk before running. Meanwhile, SEC should adopt a strategy that investors can promote development by maintaining security.
