Gary Gensler officially resigned as chairman of the US Securities and Exchange Commission (SEC) yesterday, but the federal agency’s approach to cryptocurrencies is already under review.
Acting President Mark Uyeda announced Tuesday that the agency has created a cryptocurrency 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 long-time 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 crafts crypto regulations.
Both the tone and content of the SEC’s Tuesday announcement indicate a radical shift in the agency’s approach to crypto regulation under the new Trump administration.
“To date, the SEC has relied primarily on enforcement actions to regulate cryptocurrencies retroactively and reactively, often adopting novel and untested legal interpretations along the way,” the statement said. “Clarity around who needs to register and practical solutions for those seeking to register have been elusive. The result has been confusion about what is legal, creating an environment hostile to innovation and ripe for fraud. The SEC can do better.”
The SEC’s new cryptocurrency task force will also coordinate with the Commodity Futures Trading Commission (CFTC), which, under the leadership of former Chairman Gensler and former CFTC Chairman Rostin Behnam, has seen embroiled in a competition with the SEC over which agency should be lead. regulator of the crypto industry.
“This task will take time, patience and a lot of hard work. It will only be successful if the Working Group has input from a wide range of investors, industry participants, academics and other stakeholders. “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,” Commissioner Peirce said in a statement.
The SEC previously published staff guidance in 2019, although it hasn’t been widely referenced or discussed in the past five years.
