You can learn SEC from the Tax Authority to make the organization more simplicity for encryption

In February, the Ministry of Governmental efficiency (DOGE) began to seek public inputs related to the US Securities and Stock Exchange (SEC) – a step indicating reform in the agency imminent.

Since then, the Supreme Education Council, in line with President Trump, has taken a much lower position towards the encrypted currency industry, as it is clear from appointing friends of friends to encrypt and abandon many cases and investigations in encryption companies. But Doge has the ability to implement more change, and attention in SEC indicates an increase in pressure towards organizers to reassess their approach to digital assets.

In response to the request for public inputs, Paul Ghrouwal, Coinbase’s chief official – one of the companies He no longer faces a lawsuit From the Supreme Education Council – Suggest policy Requesting the Supreme Education Council to pay the legal costs of companies that defy successfully enforcement efforts. The motivation for his suggestion is clear, but it is likely that the effect of DOGE on the encryption is a little wider.

As Joel Khalili Summary in WirelessSEC’s last decline in lawsuits is “an early reference to the purpose of the agency to work in its arm with the industry to reach a set of rules to govern transactions and encryption products.”

Since things are currently, SEC’s lack of proactive guidance makes it difficult for companies to plan long -term compliance strategies, and their enforcement procedures often come after years of operation, leaving companies and investors vulnerable to unexpected legal risks. To move forward, this is likely to change.

A clear compliance with the interactive application

Dependence on implementation instead of pre -emptive guidance has forced companies such as Coinbase, Ripple and Celsius to spend millions in litigation to clarify their organizational position. But in one A case against the debt fundSEC admitted that it was not accurate in its statements, prompting the court to order SEC to cover the company’s legal expenses – a preview of the Coinbase’s proposal. The ruler casts doubts on the agency’s credibility and highlighted concerns about its enforcement practices.

In the future, he expects to see organizational agencies – including the Supreme Education Council – under the increasing pressure to comply with the American Treasury approach, which gives priority to clear compliance with the implementation of the reaction. Digital asset instructions in the cabinet are more organized and address the main areas such as tax reporting, compliance and AML measures. The unified definitions of the security in the encryption space are necessary to help companies organize their products appropriately from the start.

Budget

In addition to writing down notes from the cabinet, SEC can also look at the Inspiration Tax Authority. The provision of a “safe port” for early stage projects can encourage innovation while ensuring compliance over time, similar to the proposals previously discussed by SEC Hester People. The Tax Authority has already adopted this approach, the source Temporary transitional relief Expatriate taxpayers in January 2025.

The Tax Authority historically relied on volunteer disclosure programs to bring taxpayers to compliance instead of imposing submitting punitive actions. A similar model must be applied to the regulation of encryption as well.

While some people assume the organization by nature hinders innovation, the opposite can be true. This is because the processes of handrails are clearly defined will take more entities that calm down the risks to enter the ecosystems and help them grow. Light organizational touch It requires The enforcement of the strong background interface and can lead to unnecessary friction between the organizers and companies.

In all, the best coordination between SEC, Treasury and IRS would help prevent regulatory disputes and simplify compliance obligations for digital asset companies and stakeholders. The ministry’s digital assets instructions already provide a strong basis for this type of alignment via agencies. The current organizational uncertainty and the interactive implementation approach in SEC suffocate growth, while a more clear and more coordinated framework will benefit the entire ecosystem.

The bottom line

Between DOGE’s request for inputs, the broader new administration’s commitment to reform digital assets, and the proposal of Coinbase, the stage has been set for reforms aimed at making organizational supervision more predictor. While we are in the early stages of the new administration, changes already occur at an amazing pace. It is clear that Duji’s influence on SEC policies will have an impact – especially with the public discourse on these issues, which increases the promotion of the issue of guidelines is clearer instead of organizing by enforcement.

Of course, it should be noted that Duji’s plans for SEC are likely to exceed Crypto, just as efforts to regulate the industry extend beyond the Supreme Education Council. In the end, it will be useful for the new administration, in conjunction with Congress, to create a legislative framework for the industry, so both individual institutions and taxpayers understand what constitutes a commodity, security and digital assets. In other words, we must learn to walk before we run. Meanwhile, SEC should adopt a strategy that can enhance growth while maintaining investor protection.