The Crypto 2.0 task force will work to develop a regulatory framework for crypto assets.
Mark Uyeda, the new head of the Securities and Exchange Commission (SEC), is launching a new crypto task force within the agency.
Uyeda, the acting chair of the SEC, said the goal of the crypto task force, dubbed SEC Crypto 2.0, will be to develop a clear regulatory framework for crypto assets.
Officials said the task force will collaborate with SEC staff and the public to create a “sensible regulatory path that respects the bounds of the law.”
Under former SEC Chair Gary Gensler, the agency was viewed as anti-crypto, mostly relying on enforcement actions to regulate the industry. Often, according to Uyeda, the actions took on novel and untested legal interpretations.
Uyeda also said there has been a lack of clarity around which cryptocurrency entities must register as securities and few practical solutions for those seeking to register. As a result, there has been confusion about what is legal. This, in turn, created an environment hostile to innovation and conducive to fraud, he said.
Thus, the focus of the task force will be to help the commission “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.”
“Crypto Mom” to lead task force
Uyeda appointed SEC Commissioner Hester Peirce to lead the task force. Peirce was appointed to the SEC by President Donald Trump in his first term in 2018.
Prior to joining the SEC, Peirce conducted research on financial market regulations at the Mercatus Center at George Mason University. She also served as senior counsel on the U.S. Senate Committee on Banking, Housing, and Urban Affairs. Before that, she served as counsel to SEC Commissioner Paul Atkins and worked as a staff attorney in the SEC’s Division of Investment Management.
Peirce has also been a staunch advocate for the crypto industry. She is known in the industry as “Crypto Mom” for her support of crypto and digital assets and opposition to over-regulation.
While it is meant to be complimentary, Peirce doesn’t love the moniker.
“I think it’s funny, but at the same time, I do take a little bit of an issue with the term ‘mom’,” Peirce told DL News last July. “I’m not your mom.”
Of the task force, Peirce said the undertaking will take time, patience, and a lot of 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. 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,” Peirce said.
Also, Richard Gabbert, senior advisor to Uyeda, will serve on the task force as chief of staff. Taylor Asher, senior policy advisor to the acting chairman, will serve as the task force’s chief policy advisor.
“I look forward to the efforts of Commissioner Peirce to lead regulatory policy on crypto, which involves multiple SEC divisions and offices,” Uyeda said.
The task force will coordinate with federal departments and agencies, including the Commodity Futures Trading Commission, as well as state and international agencies. Further, it will operate within the statutory framework provided by Congress and coordinate with Congress as it enacts changes.
Positive reaction from industry
The reaction from the crypto industry has been overwhelmingly positive.
“Thank you, Acting Chairman Uyeda, for saying it: The SEC’s war on crypto created ‘confusion about what is legal’ and ‘an environment hostile to innovation and conducive to fraud.’ Looking forward to working with the Crypto Task Force to undo the prior administration’s damage,” wrote Stuart Alderoty, chief legal officer at Ripple, in a post on X.
The SEC Crypto 2.0 task force will be holding roundtable discussions in the future. The task force also welcomes public input at [email protected].