A New Era Of Crypto Regulation? Trump Designates Pro-Innovation Acting Chairs For SEC, CFTC

U.S. President Donald Trump has designated acting Chairs for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), both of which are Commissioners.

The designations came after SEC Chair Gary Gensler and CFTC Chair Rostin Behnam both stepped down from their positions on Inauguration Day.

Mark Uyeda Rises Temporarily to SEC Leadership

In a statement from the Donald Trump White House on Monday, it was revealed that SEC Commissioner Mark Uyeda has been designated as the Wall Street regulator's Acting Chair.

Uyeda is beloved in the cryptocurrency space for his more forward-thinking approach toward digital assets. He was also critical of Gensler's approach that marked multi-million-dollar lawsuits and numerous Wells Notices against crypto and blockchain firms.

He has called the SEC's regulatory approach to digital assets in the past few years a "disaster." He acknowledged that the agency provided "nothing" in terms of guidance before enforcement actions were implemented.

A joint statement by Uyeda and co-Commissioner Hester Peirce in 2024 called out the Gensler SEC's "poorly conceived crypto policy," suggesting that Uyeda may bring a more balanced approach to the industry during his tenure.

Notably, Trump has nominated former SEC Commissioner Paul Atkins to replace Gensler, but he will need Congress confirmation to officially step into the role.

Caroline Pham Steps In for CFTC

Over at the CFTC, there is no nominee yet for the permanent chair role, but on Monday, CFTC Commissioner Caroline Pham's office revealed that she was designated by Trump to be the acting chair.

Bloomberg reported that the five CFTC Commissioners also voted Monday to confirm Pham as the regulator's acting chair.

Pham, formerly with Citigroup, has advocated for regulatory clarity for digital asset service providers. She is also known for publishing a dissent statement against agency actions to prevent event contracts exchange Kalshi from allowing U.S. traders to engage in political prediction markets.

In 2022, Pham visited Ripple's office. Ripple was the subject of a contentious, years-long lawsuit by the SEC. The fintech firm is also the largest holder of the XRP token.

Pham said she is looking forward to collaborating with "all stakeholders in this new capacity as we focus on the CFTC's mission to promote well-functioning markets that support economic growth and the competitiveness of the United States."

Will Uyeda and Pham Cooperate for Clarity?

In 2023, Behnam admitted that there is a "turf war" between the SEC and CFTC regarding the regulation of digital assets and blockchain-based products.

Under Gensler and Behnam, the two financial regulators have been going back-and-forth regarding which agency should be overseeing crypto, but for the most part, the SEC has pushed the battle forward through its aggressive actions toward the sector.

While Uyeda and Pham will only be temporarily leading the agencies until permanent Chairs are appointed, their shared openness to innovation could help reduce the tension and encourage collaboration for regulatory clarity instead.

It remains to be seen how the latest designations will affect crypto regulation in the country, and whether Uyeda and Pham will bring about a breath of fresh air for crypto markets.