SEC May Redefine Cryptocurrency Attributes, Expert Predicts

According to BlockBeats, U.S. regulatory expert Amy Lynch has predicted that the Securities and Exchange Commission (SEC) might redefine the attributes of cryptocurrencies, potentially classifying most tokens as commodities and thus removing them from the SEC's jurisdiction. The SEC's lawsuit against Ripple Labs over the issuance of XRP tokens is seen as a pivotal case. The SEC had previously accused Ripple of unregistered securities issuance, and this case has been considered a legal basis for classifying most cryptocurrencies as SEC-regulated securities. The case has progressed slowly, with the SEC appealing a previous court ruling last October. As regulatory perspectives shift, whether the SEC will continue its appeal remains a focal point. More broadly, the enforcement of securities laws might face significant limitations, partly due to the influence of the Department of Government Efficiency (DOGE). Lynch speculates that DOGE may scrutinize the SEC's internal operations more closely and attempt to streamline the agency. "I think they will take their time to formulate their own plans," Lynch said regarding the SEC, adding that pending cases based on the positions of former employees might eventually be dismissed. Lynch cautioned that uncertainty in the legislative process could lead to short-term selling pressure, but in the long term, it would solidify the value foundation. She noted that there have been instances where cryptocurrency prices dropped due to changes in the legal framework.