There are five SEC commissioner seats and one of them has been vacant for some time. President Donald Trump has nominated one individual, Elad Roisman, who is the current chief counsel for the Senate Banking Committee, and is considering another, Allison Lee, a former enforcement attorney at the SEC.
There is not much known about their policies. At this point, Roisman appeared before the Senate Banking Committee for a confirmation hearing, At the hearing Roisman explained that he intends to keep an open mind about advice proposal and that it is important to consider the effect of a new proposal standard would preserve investor access to advice.
As he stated, “It’s important for [investors] to have adequate disclosures and understand the nature of their relationship, including how conflicts of interest exist and how they can be addressed.”
Currently, there is not much information about Lee and her position matters, and whether the nomination is going forward.
Why does this matter in the land of bitcoin and blockchain? Because cryptocurrency regulations are at the forefront of one of the pivotal roadblocks and barriers the growing industry must adapt, adjust and evolve with. We have saw much of the back and forth banter with the SEC and the Bitcoin ETF approval as they are clearing the kingpin of governing bodies that will ultimately determine the fate of when we see the first legally approved and regulated bitcoin exchange-traded fund.
Current SEC Chairman Jay Clayton has also had his fair share of run-ins with the cryptocurrency sector, helping dish out the “Bitcoin is not a security” as well as “Ethereum is not a security” ruling earlier this year so any new nominees of POTUS Trump could be a close running partner in the decision making process with Mr. Clayton. The SEC will also play a key role in the fate of Initial Coin Offerings, determining the entire ecosystem's future sooner than later. They also will have to battle out the security token offerings as that is a budding new happenstance within the industry as well.
What do you guys think? Will Trump's nominees that are selected be pro-cryptocurrency or will they resist change and put up as many roadblocks and speed bumps as possible? Recently we had report about committing resources to blockchain technology but nothing is a given with Trump and his actions. One thing is for sure, Trump would love to take credit for opening up the flood gates to new cryptocurrency regulatory frameworks, especially amidst all of the looming trade war talks and potential US debt collapse that could happen in the coming years.