The US Securities and Exchange Commission (SEC) is preparing to review several internal staff directives that influence how the regulator oversees the crypto industry.

This move aligns with President Donald Trump’s latest Executive Order on deregulation. It also follows guidance from the Department of Government Efficiency (DOGE), currently led by Elon Musk.

SEC to Review Howey Test and Investment Contract Framework Application

On April 5, Acting SEC Chair Mark Uyeda noted that the upcoming reviews could result in changes or full withdrawal of some statements. He emphasized that the agency’s objective is to ensure its guidance remains relevant and consistent with its current priorities.

“The purpose of this review is to identify staff statements that should be modified or rescinded consistent with current agency priorities,” the Commission stated.

One of the main targets of this reassessment is the SEC’s current framework for determining whether a digital asset qualifies as a security. This guideline relies heavily on the decades-old Howey Test.

It also reflects the views of former SEC official Bill Hinman, shared during a 2018 speech. Hinman argued that the degree of decentralization behind a token should matter more than how it was originally sold.

This view has influenced several enforcement decisions, including the legal battle with Ripple over XRP. However, many in the industry argue that the Howey Test is no longer suitable for modern blockchain technologies.

This development may pave the way for a dramatic shift in how crypto assets are evaluated. Crypto analyst Jesus Martinez believes that removing or revising the current framework could be a major turning point for retail investors in the US.

He argues that regulatory constraints have long blocked everyday users from participating in projects like launchpads and node operations. These platforms are often only accessible to those with foreign identification or institutional workarounds.

Martinez says that dismantling such outdated rules could help level the playing field for American investors.

“It’s been hurting retail for the longest time & we need to prioritize American citizens, this is a big step in that direction,” Martinez concluded.

Beyond the Howey-based framework, the SEC is also reviewing several other documents. One of these is a bulletin outlining regulatory concerns around mutual funds investing in Bitcoin futures.

The financial regulator is also reviewing a risk alert from the Division of Examination. This alert warns that digital assets pose unique investor risks, including regulatory uncertainty and cybersecurity threats.

Additionally, the Commission is reassessing whether state-chartered banks and trust companies can act as qualified custodians under the SEC’s Custody Rule.

The crypto community believes the SEC’s broad reassessment points to a shift toward a more modern and flexible regulatory approach. This shift could reshape the crypto landscape for both retail investors and institutional participants

Saros, the Solana-based altcoin, has been on an impressive uptrend over the past month. The token’s price has formed new all-time highs (ATHs) nearly every day throughout March. 

However, with the momentum showing signs of slowing, investors are wondering if this rally is nearing its end.

SAROS Refrains From Following Bitcoin

The correlation between Saros and Bitcoin (BTC) is currently negative, sitting at -0.43. This negative correlation has worked in Saros’ favor, as it allowed the altcoin to perform well during Bitcoin’s struggles throughout March. While Bitcoin faced significant declines, Saros was able to rally largely due to this inverse relationship.

The shifting dynamics between Bitcoin and Saros will be key to the future price movement of the altcoin. Should Bitcoin regain its upward momentum, Saros may face increased selling pressure. This is because the negative correlation that has benefited Saros may reverse, impacting the altcoin’s ability to maintain its upward trajectory. 

The overall macro momentum of Saros shows that investor interest has remained strong. The Chaikin Money Flow (CMF) indicator has been increasing steadily over the past month, signaling consistent inflows. 

Recently, it crossed the saturation threshold of 0.7, a level that has historically led to price corrections. This suggests that while Saros has experienced significant gains, the market may be nearing an overbought condition. If profit-taking begins, a price pullback is highly probable for the altcoin.

SAROS Price Rise Continues

Saros has surged by an astounding 1,024% since the beginning of March, trading at $0.153 as of now. Throughout March, the altcoin has formed new ATHs almost daily, reflecting strong investor sentiment and demand. 

The current ATH stands at $0.163, and the momentum could continue pushing the price upwards, potentially reaching $0.200 if the uptrend remains intact. However, as the price continues to rise, the risk of profit-taking increases. 

If Saros faces such a pullback, it could fall back towards the $0.100 support level. If the altcoin loses this key support, the price could drop further to $0.055, invalidating the bullish outlook. Investors should keep an eye on these levels as they will help determine whether the current rally is sustainable.