SEC Crypto Task Force Discusses Digital Asset Regulation Amidst Potential Overhaul
The U.S. Securities and Exchange Commission’s (SEC) crypto task force held its inaugural public meeting on Friday, marking a significant step in the ongoing dialogue surrounding the regulation of digital assets. This event comes as the Trump administration signals intentions to reshape the regulatory landscape for cryptocurrencies, adding a layer of anticipation to the discussions.
Among the prominent figures participating in the roundtable were John Reed Stark, the former chief of the SEC’s Office of Internet Enforcement; Miles Jennings, the general counsel for Andreessen Horowitz’s crypto arm, a16z; and former SEC Commissioner Troy Paredes. The task force is spearheaded by Republican SEC Commissioner Hester Peirce, who is responsible for developing rules and guidance for the crypto space.
“Spring signifies new beginnings and we have a new beginning here, a restart of the commission’s approach to crypto regulation,” said Peirce, setting a tone of potential change and fresh perspective for the SEC’s stance on the industry.
For a long time, there has been tension between the crypto industry and regulators over how federal securities laws apply to digital assets. Many in the industry maintain that crypto tokens are more comparable to commodities. If tokens are classified as securities, firms would need to register with the SEC, providing investors with important disclosures.
President Donald Trump, who campaigned on being a “crypto president,” has committed to reversing the industry crackdown initiated by former President Joe Biden’s SEC. Under Biden’s leadership, the SEC brought lawsuits against several crypto companies, including Coinbase and Kraken, alleging violations of its rules. The SEC’s new leadership has since agreed to withdraw or pause these cases.
The task force debated whether crypto tokens need a new, separate regulatory framework, distinct from how the SEC oversees securities like stocks. Jennings encouraged the SEC to take a “technology-neutral” approach, focusing on the differences between systems like Ethereum and the ownership of stock in a company like Apple. He emphasized that the underlying technology should not dictate regulatory approaches.
However, not everyone shared this view. Democratic SEC Commissioner Caroline Crenshaw expressed concerns that loosening rules for cryptocurrencies could create a separate regime that opens the door to risks. “Modifying the law to facilitate the success of a chosen product category is fraught with risk,” Crenshaw stated. She warned of “negative domino effect on other areas of the market protected by the same laws.”
The task force’s first roundtable coincides with the Trump administration’s broader efforts to overhaul policies on cryptocurrency. Earlier in the month, Trump signed an executive order to establish a strategic reserve of cryptocurrencies and hosted a summit for industry leaders at the White House, indicating the importance placed on the sector.
(Reporting by Hannah Lang in New York; Editing by Bill Berkrot)
