The U.S. Securities and Exchange Commission (SEC) crypto task force held its first public meeting on Friday, bringing together experts to explore how existing securities laws might apply to digital assets. This meeting comes as the Trump administration prepares to overhaul the regulatory landscape for cryptocurrencies.
Leading the task force is Republican SEC Commissioner Hester Peirce. “Spring signifies new beginnings and we have a new beginning here, a restart of the commission’s approach to crypto regulation,” Peirce stated.
Among the participants in the roundtable discussion were John Reed Stark, former head of the SEC’s Office of Internet Enforcement; Miles Jennings, general counsel for Andreessen Horowitz’s crypto arm, a16z; and former SEC Commissioner Troy Paredes.
The central question under debate was whether crypto tokens necessitate a new, separate regulatory framework, distinct from the existing SEC oversight of more traditional securities like equities.
The crypto industry has often clashed with regulators over the application of federal securities laws to digital assets, with many arguing that crypto tokens are more akin to commodities.
One of the key points of discussion was the question of whether all tokens should be classified as securities, which would require firms to register with the SEC and provide investor disclosures.
President Donald Trump, who has pledged to be a “crypto president,” is planning to reverse the more stringent approach taken by former President Joe Biden’s SEC. The Biden-era SEC filed lawsuits against several crypto companies, including Coinbase and Kraken, alleging they had violated existing regulations. The new leadership at the SEC has agreed to withdraw or pause many of these cases.
Jennings advocated for a “technology-neutral” approach, urging the SEC to consider the specifics of each asset. He proposed “looking at what differentiates a system like ethereum from ownership of equity in Apple.”
Conversely, Democratic SEC Commissioner Caroline Crenshaw expressed concerns that loosening regulations for cryptocurrencies could create risks. Crenshaw cautioned that “Modifying the law to facilitate the success of a chosen product category is fraught with risk…of creating the negative domino effect on other areas of the market protected by the same laws.”
The task force’s discussions come as Trump has taken steps to reshape policies concerning cryptocurrency. Earlier in the month, Trump signed an executive order to establish a strategic reserve of cryptocurrencies. He also hosted a summit for industry leaders at the White House.
