The SEC recently announced that it “can do better” when it comes to regulating cryptocurrencies.
On January 21, 2025, Gary Gensler officially stepped down as the chairman of the U.S. Securities and Exchange Commission (SEC). Right away, the agency's approach to crypto is changing.
Acting Chair Mark Uyeda shared that the SEC has formed a new crypto task force. This group aims to create a clear and comprehensive regulatory framework for crypto assets. Commissioner Hester Peirce, a long-time supporter of the crypto industry, will lead this task force. They plan to work closely with industry players to develop these regulations. The task force will also assist Congress, providing “technical assistance” as they work on crypto regulations.
The tone of the SEC's announcement shows a significant shift in their approach to crypto regulation under the new Trump administration.
“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively,” the statement noted. “Clarity about who must register and practical solutions for those seeking to register have been elusive. This has led to confusion about what is legal, creating an environment that is hostile to innovation and conducive to fraud. The SEC can do better.”
The new crypto task force will also coordinate with the Commodity Futures Trading Commission (CFTC). This collaboration comes as both agencies have been competing over which one should be the main regulator of the crypto industry.
“This undertaking will take time, patience, and hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working together with the public to create a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” said Commissioner Peirce.
The SEC had previously published guidance in 2019, but it hasn’t been referenced much in recent years.