January 17, 2025 | Westlaw Today

Westlaw Today Interviews Chris O’Brien for a Q&A on the SEC and the Future of Cryptocurrency Enforcement

2 min

On January 17, 2025, Westlaw Today interviewed Chris O’Brien for a Q&A on what SEC enforcement regarding cryptocurrency will look like over the next several years.  According to the article, the new administration’s approach is expected to turn away from the expansive enforcement strategies of the previous administration.

When asked about how the new administration will apply the Howey test in the cryptocurrency market, O’Brien explained: “I anticipate that Congress and the new president will likely act to provide a new, clearer framework for crypto, and the application of Howey — while still relevant — will be less prominent than new legislation and rules promulgated under new law or laws.”

“I believe the SEC will be more open to a true dialogue with the industry, and less likely to regulate by enforcement,” he added, when asked about the extent to which an Atkins-led SEC will pull back on the scope of cryptocurrency projects that it “seeks to frame as investment contracts”.

O’Brien also discussed the potential for the FIT21 Act, or some other version of it, to become a means for Congress to establish a cryptocurrency framework.  “The prospects are quite good for a bipartisan bill. Members have predicted passage in 2025,” he said. “The current bills in Congress are quite good and I expect something akin to these — with the normal legislative negotiations and changes — emerging.”

Click here to access the article.