Regulatory Reversal Signal: SEC Fully Controlled by Republicans, Potential Favorable Crypto Market Rules in 2026

The major shift in the power dynamics of the U.S. Securities and Exchange Commission (SEC) has occurred. With the departure of Democratic Commissioner Carolyn Crenshaw, the SEC is now fully led by commissioners appointed by the Republican Party, signaling a significant adjustment in the regulatory direction of the U.S. crypto market. According to the latest news, the agency is expected to introduce crypto-friendly rules by 2026 and will continue to implement the rulemaking efforts supporting cryptocurrencies that were initiated last year. Meanwhile, the U.S. Senate is expected to vote soon on the Crypto Market Structure Act, with multiple signals indicating that the crypto market is entering a new policy window.

Specific Implications of the SEC Power Shift

Who is in control of the SEC

The new SEC leadership is composed of a group of cryptocurrency advocates. Among them, Commissioners Hester Peirce and Mark Uyeda have long been supporters of the crypto industry, while with Paul Atkins confirmed as SEC Chair, the agency has clearly retreated from years of aggressive enforcement against the crypto sector. This transfer of power is not limited to the SEC; the Commodity Futures Trading Commission (CFTC) has also welcomed a new Republican Chair, Mike Selig, who is the sole commissioner of the agency. Having both key regulatory agencies led by Republicans is rare in U.S. regulatory history.

Fundamental Differences in Policy Attitudes

There are significant differences between the Republican and Democratic parties regarding the crypto industry. According to relevant information, Republicans are generally more friendly toward the crypto sector than Democrats. This difference is reflected not only in rhetoric but also in concrete actions. Under the new leadership, the SEC has withdrawn nearly all pending cases and exited multiple court litigations, contrasting sharply with the aggressive enforcement of the previous chair against the crypto industry.

Potential Market Changes

Recent Policy Trends

The U.S. Senate is expected to vote soon on the Crypto Market Structure Act. This draft will clarify the regulatory framework for tokenized assets and decentralized finance (DeFi) projects, and define the responsibilities of the SEC and CFTC. According to Wall Street giant Goldman Sachs, the upcoming U.S. market structure legislation could serve as a key catalyst, driving the next wave of institutional adoption of cryptocurrencies.

Signals of Institutional Capital Influx

The power shift has already begun influencing decisions in traditional financial institutions. Morgan Stanley has submitted documents to the SEC to apply for ETF products linked to Bitcoin and Solana prices. Institutions such as Grayscale, Franklin Templeton, Canary, and Bitwise are also advancing spot ETF applications, with net inflows into XRP spot ETFs exceeding $1.25 billion. These actions reflect that an improved regulatory environment is becoming a major driving force for institutional participation in the crypto market.

Possible Regulatory Directions in 2026

Personal Perspective

Based on the current power landscape and policy signals, the crypto regulatory rules in 2026 may make progress in the following areas:

• Clarification of token classification frameworks to reduce regulatory uncertainty
• Guidance on compliance pathways for DeFi projects
• Standards for crypto asset trading and custody
• Elimination of regulatory overlap between the SEC and CFTC

The introduction of these rules is expected to pave the way for institutional investors to participate more easily in the crypto market, though the specific content still awaits official announcement.

Summary

The complete transfer of SEC authority marks a fundamental shift in the regulatory environment of the U.S. crypto market. From aggressive enforcement to support for development, this change not only alters the attitude of regulatory agencies but also opens a policy window for industry growth. The Senate’s vote on the Market Structure Act, multiple ETF applications from institutions, and the strategic moves by traditional financial giants all point in the same direction: the crypto market is moving from the fringes of regulation toward recognition as an asset class.

The favorable rules expected to be introduced in 2026 will embody this transformation. For market participants, the key is to observe the specific content and enforcement of these rules, rather than just the policy signals themselves. Clarification of the regulatory framework is inherently positive, but the ultimate market reaction depends on whether these rules truly create operational space for industry development.