SEC Makes Strategic Appointments: Former Blockchain.com Exec Joins US SEC for Crypto Regulation

Big news from the US Securities and Exchange Commission (SEC) that’s getting attention in the crypto world. The agency recently announced new hires, and some have direct experience with digital assets and the blockchain industry. This is a significant development for anyone tracking how regulators are approaching crypto regulation.

Key SEC Appointments Bring Crypto Experience

The SEC is bringing in talent with backgrounds relevant to the evolving financial landscape. Among the new staff are individuals who have worked closely with cryptocurrency and blockchain technology.

• Jamie Selway is joining the SEC as the director of trading and markets. Selway previously served as the global head of institutional markets for Blockchain.com from 2018 to 2019. His experience at a major crypto firm brings a unique perspective to a key regulatory division.
• Brian Daly is another notable hire. A partner at Akin Gump Strauss Hauer and Feld LLP, Daly has experience advising clients on crypto-related matters. He will now head the commission’s investment management division. Daly expressed respect for the SEC’s regulatory commitment while acknowledging his past role advising clients and providing public comment from an investment management viewpoint.

Navigating the Complex Crypto Regulation Landscape

These appointments happen while lawmakers in the US Congress are actively working on legislation aimed at clarifying the roles of financial regulators concerning digital assets. The CLARITY Act, currently under consideration in the House of Representatives, is one such effort. This bill seeks to define the authority that the SEC and the Commodity Futures Trading Commission (CFTC) would have over different types of digital assets, potentially streamlining the regulatory environment.

What Does a Blockchain.com Background Mean at the US SEC?

Jamie Selway’s prior role at Blockchain.com is particularly noteworthy. Working as the global head of institutional markets means he has direct insight into how large players interact with crypto assets, trading platforms, and market structures. His perspective could inform how the SEC approaches rules related to crypto exchanges, market surveillance, and trading practices under his direction in the Division of Trading and Markets. Bringing industry experience into regulatory bodies can sometimes lead to more informed policymaking, although the ultimate impact remains to be seen.

Context: Recent Regulatory Moves and Government Appointments

The SEC’s staffing changes occur alongside other recent actions. Just before announcing the new hires, the SEC stated it was withdrawing several proposed rules issued between March 2022 and November 2023. Some of these proposals were related to digital assets, including potential expansions of the ‘exchange’ definition to include decentralized finance (DeFi) protocols and stricter requirements for crypto custody. The withdrawal of these specific proposals, while not explicitly linked to the new hires, adds another layer to the ongoing regulatory narrative.

It’s also important to view these as part of broader government appointments across financial regulators. Despite recent confirmations, such as Paul Atkins to lead the SEC, the commission still has a vacant seat. Commissioner Caroline Crenshaw’s term ended recently, though commissioners can serve longer. The CFTC also faces significant leadership vacancies following the departures of former chair Rostin Behnam and commissioners Christy Goldsmith Romero and Summer Mersinger. The Senate is considering Brian Quintenz for CFTC chair, but other positions remain unfilled. The landscape of US crypto regulation is clearly still taking shape, influenced by new personnel, legislative efforts, and ongoing staffing needs at key agencies like the SEC and CFTC.

Summary

The US SEC is adding personnel with direct experience in the cryptocurrency and blockchain space, including a former Blockchain.com executive and a lawyer experienced in crypto matters. These government appointments signal a potential shift in the agency’s approach or capacity to handle complex digital asset issues. Occurring alongside legislative efforts like the CLARITY Act and changes in proposed rules, these hires are a key development in the ongoing evolution of crypto regulation in the United States. The integration of industry experience into regulatory roles is a trend worth watching closely as the framework for digital assets continues to develop.