The former chief of the SEC's crypto unit has provided insights into what the enforcement of crypto regulations may look like under the new administration. He states that while he doesn't know for certain, he believes that crypto enforcement will be different but not disappear. In the past, the SEC focused on fraud and capital raising events, particularly unregistered initial coin offerings. However, the industry has responded responsibly, and now many crypto entrepreneurs raise money in compliance with securities laws. More recently, the SEC has focused on secondary markets and decentralized protocols, which pose challenges in terms of securities laws. Moving forward, the author predicts that there will be increased resources dedicated to guidance and rules, a renewed focus on fighting fraud, and the enforcement of a new rulebook after a transition period. The SEC will aim to balance investor protection with facilitating capital formation and maintaining orderly markets. Other federal agencies may also emerge as regulatory leaders in the crypto space. Overall, the industry needs a rulebook that makes compliance achievable while allowing for growth and investor protection.



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