A New Era for Crypto Regulation & Innovation?
Recent developments in the crypto asset and financial technology space suggest that U.S. regulators may be shifting toward a more balanced approach — one that prioritizes clearer regulations while fostering innovation over a more enforcement-driven strategy.
President Trump’s recent executive order on crypto assets, the rebooted SEC Crypto Task Force, and a pause on certain enforcement actions all contribute to a changing regulatory landscape.
By: David G. Adams, Frank L. Gerratana, Samuel Asher Effron of Mintz – MintzEDGE
Related Attorneys
- David G. Adams
- Frank L. Gerratana
- Samuel Asher Effron
The Shifting Regulatory Landscape
Several key developments signal a potential shift toward regulatory clarity for crypto, encouraging both innovation and investor protection. These include:
- President Trump’s Executive Order on Crypto Assets
- The SEC’s Crypto Task Force Reboot
- A pause on certain SEC enforcement actions
If these developments are received favorably by the industry, we can anticipate more investment and new entrants in the crypto asset space, with a focus on research and development, and new innovations by both start-ups and existing enterprises.
The Trump Administration’s Executive Order on Crypto Assets
On January 23, 2025, President Trump issued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” This order reversed the prior administration’s approach to crypto regulation by revoking Executive Order 14067 and the Department of the Treasury’s “Framework for International Engagement on Digital Assets.”
The Trump administration’s policy suggests a preference for open public blockchain networks, opposes the creation of a U.S. central bank digital currency (CBDC) and seeks to provide regulatory certainty through better-defined jurisdictional boundaries.
The executive order also created the President’s Working Group on Digital Asset Markets, chaired by David Sacks, to develop a federal regulatory framework governing crypto assets and evaluate a national crypto asset stockpile. This group has been tasked with submitting a report with regulatory and legislative proposals within 180 days.
Federal agencies, including the SEC and CFTC, must now review previous regulatory guidance that conflicts with this new direction.
Crypto Task Force Reboot & Pause on Binance Enforcement
In a related action, the SEC re-formed its Crypto Task Force, led by Commissioner Hester Peirce.
Commissioner Uyeda, in an announcement titled “Crypto 2.0,” stated that the task force aims to resolve uncertainties in crypto regulation by developing clearer registration pathways and enhancing disclosure frameworks. The Task Force will reportedly collaborate with stakeholders across the public and private sectors to shape a more coherent regulatory approach.
Shortly after the announcement, the SEC and Binance jointly requested a 60-day stay of the SEC’s lawsuit against the crypto exchange, citing the potential impact of the newly established Task Force. A similar pause was also requested in the SEC’s ongoing action against Coinbase. These actions may indicate a strategic shift towards a more industry-friendly approach.
Commissioner Peirce’s Statement on the Future of Crypto Regulation
In her February 4 statement, “The Journey Begins,” Commissioner Peirce outlined the Task Force’s objectives and highlighted key areas of focus, including:
- Clarifying “Security” Status: The Task Force aims to determine the status of different crypto assets under securities laws.
- Providing a Pathway to Registration: The Task Force is considering actions to offer temporary relief for unregistered coin or token offerings.
- New Crypto ETFs, Staking, and In-Kind Creations: The Task Force will collaborate to clarify the SEC’s approach to approving new crypto exchange-traded products and allowing staking.
- Addressing Crypto Lending and Staking Programs: The Task Force will work to clarify how lending and staking programs can be structured legally.
- Clarifying Custody Solutions: The Task Force will provide a framework for investment advisors to custody client assets.
- Updating Special Purpose Broker-Dealer Relief: The Task Force will explore updating the framework to potentially allow broker-dealers to custody crypto asset securities alongside non-security crypto assets.
Conclusion
These regulatory developments signal a potential shift in the treatment of crypto assets by the SEC. Market participants are encouraged to actively monitor changes and position themselves to capitalize on emerging opportunities.
