On Tuesday, major US financial regulators unveiled new rules for the cryptocurrency industry that could significantly ease existing regulatory burdens, potentially benefiting ventures related to the Trump family. The Securities and Exchange Commission (SEC) introduced revised guidelines aimed at clarifying which assets qualify as securities, a designation that triggers stricter oversight. SEC chair Paul Atkins has described this initiative as a “token taxonomy” designed to categorize various crypto assets.
Collaboratively published with the Commodity Futures Trading Commission (CFTC), the guidelines categorize most crypto-based assets as commodities, collectibles, payment tokens, or “digital tools.” This reclassification means a majority of these assets will be exempt from the more rigorous oversight typically associated with securities. The only exceptions to this new framework are blockchain representations of existing securities, such as stocks and bonds.
Experts from legal, lobbying, and entrepreneurial backgrounds indicate that these changes may meaningfully reduce the regulatory and disclosure requirements currently faced by the crypto sector. They suggest this could attract more institutional interest in crypto-related activities, which in turn may benefit the Trump family’s array of crypto projects.
Todd Baker, a senior fellow at Columbia Business School and Columbia Law School, pointed out that this latest move aligns with previous actions taken during the Trump administration to facilitate the unregulated expansion of cryptocurrency trading. Under Donald Trump’s anticipated second term, the SEC is shifting away from the stringent regulatory approach established during Joe Biden’s administration and the initial Trump presidency, marked by frequent enforcement actions.
Atkins emphasized during his announcement at the Blockchain Summit in Washington, D.C., that the SEC no longer sees itself as the “securities and everything commission.” His statement was met with applause from attendees, signaling industry approval. Cody Carbone, CEO of The Digital Chamber, heralded the announcements as a sign of the agencies’ understanding of digital asset technology, with hopes of establishing the U.S. as a leading hub for cryptocurrency innovation.
The guidelines were referred to as a “bridge” while more comprehensive legislation is pursued in Congress, with the Clarity Act currently facing delays. Nonetheless, Summer Mersinger, CEO of the Blockchain Association, noted that cooperation among regulatory bodies could provide immediate benefits, while more permanent legislation is necessary for long-term stability.
Additionally, the new regulatory framework has implications for the Trump family’s cryptocurrency initiatives, which include projects involving meme coins—cryptocurrencies regarded largely as speculative. Prior to his second inauguration, Donald Trump launched a meme coin named $Trump, which saw substantial investment. First Lady Melania Trump also entered the space with her own meme coin, $Melania. The reassessment of securities classifications is expected to bolster institutional investor confidence in such speculative tokens.
Baker also pointed out that the guidelines confirm that other Trump-affiliated tokens, such as the USD1 stable coin and the $WLFI governance token issued by World Liberty Financial—co-founded by Trump family members—will not fall under SEC regulations. Notably, the Wall Street Journal reported significant financial gains for the Trump family through the $WLFI token and revealed a substantial investment from associates of an Abu Dhabi royal family, raising concerns about potential corruption.
World Liberty Financial has stated that it prioritizes compliance and plans to adhere to all regulations even amid the shifting landscape. Meanwhile, legal experts indicate that the new guidelines allow for meme coins to be categorized as “digital collectibles,” placing them outside SEC and CFTC oversight, which raises questions about the absence of mandatory disclosures and fraud protections.
As these regulations are termed a bridge by Atkins, experts caution that, while they could theoretically be reversed by future administrations, the changes initiating the proliferation of cryptocurrencies may have long-term implications for financial markets.
