Gary Gensler only officially resigned as chairman of the U.S. Securities and Exchange Commission (SEC) yesterday, but the federal agency’s approach to crypto is already being overhauled .
Acting Chairman Mark Uyeda announced Tuesday that the agency had created a crypto task force dedicated to “developing a comprehensive and clear regulatory framework for crypto assets.” The task force will be led by Commissioner Hester Peirce, a longtime crypto industry advocate, and will work closely with the crypto industry to develop regulations. The task force will also work with Congress, providing “technical assistance” as crypto regulations are developed.
The tone and content of the SEC’s announcement on Tuesday indicate a sea change in the agency’s approach to crypto regulation under the new Trump administration.
“To date, the SEC has primarily relied on enforcement actions to regulate crypto retroactively and reactively, often adopting new and untested legal interpretations along the way,” the statement said. “Clarity around who should register and practical solutions for those seeking to register remain elusive. The result is confusion about what is legal, which creates an environment hostile to innovation and ripe for fraud. The SEC can do better.
The SEC’s new crypto task force will also coordinate with the Commodity Futures Trading Commission (CFTC) – which, under the leadership of former Chairman Gensler and former CFTC Chairman Rostin Behnam, has been in competition with the SEC over which agency should be lead. regulator of the crypto industry.
“This endeavor will take time, patience and a lot of hard work. It will only be successful if the working group benefits from input from a broad range of investors, industry participants, academics and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, promotes market integrity and supports innovation,” Commissioner Peirce said in a statement.
The SEC previously issued staff guidance in 2019, although it hasn’t been referenced or discussed much over the past five years.
