The Securities and Exchange Commission Acting Chairman Mark Uyeda launched a crypto task force on Tuesday focused on developing a comprehensive and clear regulatory framework for crypto assets.
The task force, led by Commissioner Hester Peirce, will coordinate with Congress to modify the framework. It will also collaborate with federal departments and agencies, including the Commodity Futures Trading Commission and state and international counterparts.
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties,” Peirce said in a statement Tuesday. “We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation.”
The task force is looking forward to comments from the public and intends to hold roundtables in the future, the agency said.
The newly formed group will develop clear regulatory guidelines, establish practical registration procedures, design appropriate disclosure requirements, and prioritize enforcement actions strategically, the agency said.
The agency acknowledged that its reliance on enforcement actions and unclear legal interpretations has created uncertainty about compliance requirements and registration processes – leading to stifling innovation while enabling fraud. The task force will work with the SEC staff and the public to develop more coherent regulatory frameworks.
This is a departure from the SEC under now former chair Gary Gensler, who was largely seen as a crypto opponent.
Gensler had been vocal about the risks in crypto markets and the need to safeguard investors. Everyday investors usually do not get proper disclosures or information from digital assets firms, he told Bloomberg during an interview earlier this month.
Under his leadership, the SEC filed lawsuits against some of the major digital assets companies, including Coinbase.
But, per the announcement of the task force under the commission’s new leadership, “the SEC can do better.”
“Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud,” the announcement said.
Bank analysts have viewed the lack of clear regulatory frameworks as the primary reason banks take cautious steps when engaging with cryptocurrencies.
“Until we see a more formal regulatory structure from the Congress and the president around crypto, likely that's just going to be a laggard meaning, something that they'll keep a close eye on [and] continue to be educated, informed, and understand the overall marketplace,” Peter Dugas, executive director at Capco said during a recent interview with Banking Dive while discussing bank mergers and acquisitions. “But at this point, it's still too risky for most banks to do business with those crypto companies.”
Last year was a significant year for the crypto space, with bitcoin surpassing $100,000. The SEC also approved the first exchange-traded funds that hold bitcoin, noting that it was still skeptical about cryptocurrencies and that its decision does not highlight that it endorses bitcoin.
While laying out his plans for the second term at the White House, Trump said that he wants the U.S. to be a “bitcoin superpower” during his tenure. Currently, the global cryptocurrency market cap is around $3.75 trillion.
Richard Gabbert will assist Peirce as senior advisor to the acting chairman, and Taylor Asher, senior policy advisor to the acting chairman, as the task force’s chief of staff and chief policy advisor, respectively.
Uyeda will serve in his role till crypto lobbyist Paul Atkins takes the helm of the agency. Atkins served as an SEC commissioner under former President George W. Bush.
“Paul is a proven leader for common sense regulations. He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World,” Trump said in a Truth Social post. “He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before."
