Securities and Exchange Commission Acting Chair Mark Uyeda launched a crypto task force Tuesday that aims to develop a clear regulatory framework for crypto assets.
The task force, led by SEC Commissioner Hester Peirce, will coordinate with Congress to modify the framework. It will also collaborate with 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 public comments and intends to hold roundtables, the SEC said.
The new group will develop regulatory guidelines, establish registration procedures, design disclosure requirements, and prioritize enforcement actions strategically, the agency said.
The SEC said its reliance on enforcement actions and unclear legal interpretations has created uncertainty about compliance requirements and registration processes.
“Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive,” the agency said. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud.”
This is a departure from the SEC under 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 from digital-asset firms, he told Bloomberg this month.
Under his leadership, the SEC filed lawsuits against a number of crypto firms, including Coinbase.
But “the SEC can do better,” the agency said in announcing the task force.
Bank analysts have viewed the lack of clear regulatory frameworks as the primary reason banks have been cautious when engaging with crypto firms.
“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 significant in crypto, as bitcoin surpassed the $100,000 threshold. The SEC also approved the first exchange-traded funds that hold bitcoin.
While laying out his plans for the second term at the White House, President Donald Trump said he wants the U.S. to be a “bitcoin superpower” during his tenure.
Richard Gabbert will assist Peirce as senior adviser to Uyeda, and Taylor Asher, senior policy adviser to the acting chairman, will serve as the task force’s chief of staff and chief policy adviser.
