Acting Chair Mark Uyeda Orders Review of SEC Statements on Digital Assets
On Monday, April 7, 2025, Law360 reported that Acting Chair of the U.S. Securities and Exchange Commission (SEC), Mark Uyeda, has initiated a review of several staff statements regarding digital assets. This action comes in response to a recent directive from the White House aimed at deregulation and recommendations from the Department of Government Efficiency.
Uyeda announced the review in a statement posted on social media platform X, urging SEC staff to promptly evaluate seven statements issued between 2019 and 2022. The review intends to identify which statements may need modification or rescission to align with the current priorities of the agency.
Among the seven statements under scrutiny, five relate specifically to digital assets. These include guidance from the Strategic Hub for Innovation and Financial Technology, issued in April 2019, which analyzed how investment contract characteristics apply to initial coin offerings (ICOs). The guidance emphasized that entities involved in the marketing and sale of digital assets must assess the economic realities of their transactions to determine if federal securities laws apply. It elaborated on the U.S. Supreme Court’s Howey test, outlining the factors that could subject a transaction to SEC oversight.
Since the issuance of these statements, the SEC has pursued various enforcement actions against digital asset issuers and intermediaries, arguing that certain token transactions qualify as investment contracts under the Howey test and thus require SEC registration. However, since taking office in January, Uyeda has expressed a commitment to establishing clearer regulatory frameworks for cryptocurrencies rather than focusing solely on enforcement actions. He has formed a crypto task force, led by SEC Commissioner Hester Peirce, to develop a structured approach to digital assets. The task force has begun hosting roundtables to discuss the relevance of the Howey test in evaluating crypto transactions.
Additionally, the SEC plans to review a November 2020 statement from its Division of Investment Management regarding the qualifications of state-chartered banks as custodians of digital assets. This review comes in light of guidance from Wyoming’s Division of Banking, which permits Wyoming-chartered banks to hold digital assets in custody. In February 2023, the SEC proposed amendments to its custody rule that expanded requirements for digital assets, which could restrict certain state-chartered trust companies from qualifying as custodians for cryptocurrencies. Uyeda indicated that staff are already exploring alternative paths regarding this proposal.
The review will also encompass a May 2021 statement encouraging investors in funds with bitcoin futures to carefully assess risk disclosures and consider potential losses associated with such investments. This statement included plans for further analysis of the bitcoin futures market and the implications for fund holdings.
Furthermore, the staff will examine a February 2021 risk alert from the Division of Examinations, highlighting unique investor risks associated with the trading of digital assets classified as securities. Another item under review is a December 2022 statement from the Division of Corporation Finance that urged regulated firms to evaluate their disclosure obligations amid a wave of bankruptcies and financial distress in the crypto sector.
In addition to the crypto-focused reviews, the SEC staff will also assess two statements from 2020 related to disclosures firms should make during the COVID-19 pandemic.
Uyeda’s announcement referenced the White House’s executive order “Unleashing Prosperity Through Deregulation,” which instructs federal agencies to identify prior regulations for elimination in conjunction with new rulemaking. The executive order aims to address the complexities of federal regulation, mandating agencies to streamline their regulatory frameworks.
Source: Law360
