SEC Crypto Task Force eyes ‘clear’ framework for digital assets

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Acting United States Securities and Exchange Commission (SEC) Chair Mark Uyeda announced the launch of a Crypto Task Force “dedicated to developing a comprehensive and clear regulatory framework for crypto assets.”

In a hint of the agency’s shifting approach to the digital asset sector for the second term of newly sworn-in President Donald Trump, the task force was launched under the heading “SEC Crypto 2.0.” It will be led by SEC Commissioner Hester Peirce, a vocal advocate for the digital asset space.

“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way,” said the regulator in its January 21 announcement. “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.”

According to the SEC, the task force will attempt to solve these issues by collaborating with Commission staff and the public to set the agency on a “sensible regulatory path that respects the bounds of the law.”

In terms of goals, the SEC said the aim of the new group was to “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.”

The task force will operate within Congress’ statutory framework and provide technical assistance to Congress as it makes changes to that framework. This task will coordinate with other federal departments and agencies, including the Commodity Futures Trading Commission (CFTC).

“I look forward to the efforts of Commissioner Peirce to lead regulatory policy on crypto, which involves multiple SEC divisions and offices,” said Acting Chairman Uyeda.

For her part, Commissioner Peirce cautioned that the goals of the new task force will “take time, patience, and much hard work” to achieve.

“It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties,” added Peirce. “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.”

Richard Gabbert, Senior Advisor to the Acting Chairman, and Taylor Asher, Senior Policy Advisor to the Acting Chairman, will serve alongside Peirce as the task force’s Chief of Staff and Chief Policy Advisor, respectively.

The launch was met with a positive response from some notable digital currency-advocates in Congress.

House Financial Services Committee Chair French Hill (R-AR) was effusive in praise of the task force, as well as what it signaled about the changing of the guard at the SEC.

“This is the first step in undoing the immense harm caused by former Chair Gary Gensler and his regulation by enforcement approach. This action sends a clear message to the world that when it comes to crypto, ‘America is back,'” said Hill in a January 21 post on X. “I look forward to working with my colleagues in Congress and the Trump Administration to provide long overdue regulatory clarity that will allow the digital asset ecosystem to thrive in the United States.”

Meanwhile, Rep. Lisa McClain (R-MI), in a textbook example of Presidential boot-licking—a rhetorical device that’s going to become all too common in the next four years—was keen to place credit where it is due, saying, “President Trump’s newly-created crypto task force will provide regulatory clarity for the industry.”

Changing the face of the SEC

The creation of the task force was amongst the first priorities of acting chair Uyeda following his appointment by President Trump on January 20 and stands as a strong indication of how the regulator will approach the digital asset space throughout Trump’s second term.

Uyeda, a Republican member of the SEC, took over from former chairman Gary Gensler, who divided opinion on Capitol Hill—largely down partisan lines—for his supposedly heavy-handed, regulation-by-enforcement approach to the digital asset space, as well as being much criticized by certain industry figures for similar reasons.

In terms of the latter group, Uyeda’s appointment likely appeased some of the more compliance-shy digital asset players in the market, as he is known for previously voicing concerns about Gensler’s approach to rulemaking and enforcement, as well as criticizing the failure—in his opinion—of the SEC to offer guidance on how firms can register with the agency.

To be precise, he called the agency’s policies and approach over the last several years a “disaster for the whole industry” in an October interview with Fox Business.

Crypto-advocate-in-chief Trump was a fellow vocal critic of the SEC’s recent approach to digital asset sector oversight. He has moved fast since his election win last November to begin creating a more ‘accommodating’ environment for the industry.

On top of Uyeda’s temporary appointment and the launch of the new Crypto Task Force led by “Crypto Mom” Peirce, Trump has already picked a pro-business, innovation-friendly candidate to lead the SEC permanently.

In a December 4 announcement, Trump nominated Paul Atkins for SEC Chairman, highlighting his track record as a former SEC commissioner, as well as his experience in the private sector, writing via Truth Social:

“Paul is the CEO & Founder of Patomak Global Partners, a risk management consultancy. As Co-Chairman of the Digital Chamber’s Token Alliance since 2017, he has worked on & studied the digital assets industry. A former SEC Commissioner from 2002-2008, Paul strongly advocated for transparency & protecting investors.”

He added that Atkins “recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”

The nomination was not met with universal cheer, with some noting it as a characteristically pro-digital asset choice and distinct left turn away from Gensler’s consumer protection-focused corralling of the crypto-wild west.

Senator Elizabeth Warren (D-MA), who will serve as ranking member of the Senate Banking, Housing, and Urban Affairs Committee in the next Congress, highlighted Atkins’ questionable record in the finance space, saying she was:

“Concerned about putting at the helm of the SEC a Wall Street lobbyist whose main contribution during the last financial crisis was to protest fines against the giant corporations that defrauded investors.”

However, others were more optimistic about the nomination, suggesting that Atkins does, in fact, understand the need for controls.

“It’s a good choice. It’s a relief. I think he’s very solid philosophically,” said Sheila Bair, former Chair of the FDIC and former Assistant Secretary of the U.S. Treasury for Financial Institutions, in a December 4 interview with news commentary show Market Domination.

Blair went on to suggest that, despite Atkins being “very in line with the president-elect,” he is also “a seasoned hand” and “understands the need for regulation.”

This sentiment was echoed by Senator Kirsten Gillibrand (D-NY), who indicated she was likely to support Atkins’ nomination.

“He has the right experience, and I think he’s a commissioner that would work well with Congress,” she told Politico on December 6.

Atkins still has a few hoops to jump through before taking office. After the President nominates a candidate for SEC Chair, the nomination is sent to the Senate, where the Banking Committee reviews it. The nominee then undergoes a confirmation hearing, followed by a committee vote. If approved, Atkins’ appointment will go to the full Senate for debate and a final vote, with a simple majority required for confirmation. Once confirmed, the nominee is sworn in and finally takes office.

Of course, with a Republican majority in the Senate and a few favorable Democrats such as Gillibrand, much of this is a formality. What is less certain is how his stewardship over the SEC will play out.

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