Jake Chervinsky, chief legal officer of the crypto venture capital firm Variant, said the U.S. SEC's new requirement that attorneys must seek leadership's approval before formally launching inquiries marks a major shift. Chervinsky shared his statement in a Feb. 3 post.
"Huge change at SEC," said Chervinsky. "Gensler's harassment campaign only worked because crypto companies felt obligated to respond to 'requests for information' since refusal meant a subpoena. Now no subpoenas without a vote by Commissioners who are majority opposed to regulation by enforcement."
According to Yahoo Finance, SEC attorneys have been informed that they will need permission from the commission's politically appointed leadership prior to initiating formal investigations. While enforcement staff can still conduct informal investigations and send requests for information, formal orders of investigation are necessary to issue subpoenas.
Reuters reported that this change is among the first under the new administration, which is anticipated to adopt a more favorable approach toward the crypto industry. Commissioner Mark Uyeda is currently serving as chair of the agency until nominee Paul Atkins receives Senate confirmation.
In January, Uyeda announced the establishment of an SEC crypto task force led by Commissioner Hester Peirce. According to a press release, "To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way." The task force aims to develop a comprehensive regulatory framework for digital assets.
Chervinsky is also noted as a board member of both the Blockchain Association and the DeFi Education Fund. His LinkedIn profile indicates he previously served as chief policy officer for the Blockchain Association.