Gary Gensler officially stepped down as chairman of the US Securities and Exchange Commission (SEC) yesterday, but the federal agency’s approach to crypto is getting an overhaul.
Acting Chair Mark Uyeda announced Tuesday that the agency has 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 advocate for the crypto industry, and will work closely with the crypto industry to develop regulations. The task force will also work with Congress, providing “technical assistance” as it develops crypto regulations.
Both the tone and content of the SEC’s announcement on Tuesday signal a radical shift in the agency’s approach to crypto regulation under the new Trump administration.
“So far, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often using novel and untested legal interpretations along the way,” the statement said. “Clarity about who should register, and practical solutions for those seeking to register, have been elusive. The result is confusion about what is legal, creating an environment that is hostile to innovation and conducive to 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 Chair Gensler and former CFTC Chairman Rostin Behnam, has been locked in competition with the SEC over which agency should be the primary regulator of the crypto industry.
“This work will take time, patience, and a lot of effort. It will only succeed if the Task Force has input from a wide range of investors, industry participants, academia, and other interested parties. We look forward to the collaboration to the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” Commissioner Peirce said in a statement.
The SEC previously published staff guide in 2019although it has not been mentioned or discussed much in the last five years.
