The Securities and Exchange Commission (SEC) on Tuesday announced it would launch a “crypto task force” to devise a clear regulatory framework for cryptocurrency assets.
The SEC’s new task force will work with other staff and the public to develop a “sensible regulatory path that respects the bounds of the law,” the agency said in a press release. The announcement, the first published under Acting Chairman Mark Uyeda, also bashed the SEC’s prior actions under Chair Gary Gensler, a fierce crypto critic who resigned on Monday.
Gensler favored enforcement actions that acted to rein in bad actors following alleged violations of established law. His SEC took on high-profile cases against a number of major industry players, such as Coinbase and Binance; 18% of Gensler’s SEC’s total complaints were related to crypto.
“The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud,” the agency said in a statement. “The SEC can do better.”
The task force will be led by Commissioner Hester Peirce, who repeatedly joined Uyeda in dissenting from Gensler’s actions regarding crypto. In 2018, pro-crypto Redditors nicknamed Perice “Crypto Mom” after she dissented from the SEC’s rejection of a bitcoin exchange-traded fund.
“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,” Peirce said in a statement.
Tuesday’s announcement is another sign that President Donald Trump has embraced crypto, which he initially opposed but has since become an advocate for.
Last year, he signed on to a crypto project named World Liberty Financial, which made a number of cryptocurrency purchases on Monday, and sold more non-fungible tokens. Over the weekend, his team launched so-called “meme coins” named after himself and his wife, $TRUMP and $MELANIA.
Overall, Trump’s embrace of crypto — and potential federal legislation — is expected to fuel investment in cryptocurrencies, according to Coinbase (COIN+2.03%) CEO Brian Armstrong.
“The Trump effect cannot be denied,” Armstrong said Tuesday at the World Economic Forum in Davos, Switzerland. “To have the leader of the largest GDP country in the world come out undeniably and say that he wants to be the first crypto president.”
Uyeda, a commissioner since 2022 with a term expiring in 2028, was named acting commissioner earlier on Tuesday. In November, back when he was seen as a contender to take over the SEC as chair, he told Fox Business (FOXA-0.23%) the SEC’s “war on crypto must end.”
If confirmed by the Senate, he will be replaced by Paul Atkins, who Trump has nominated to lead the SEC. Atkins, a consultant who was last employed at the SEC under George W. Bush’s administration, is a friendly face to the crypto lobby. He leads Digital Chamber’s Token Alliance, which advocates “best practices” for the crypto industry, and has opposed massive fines on companies that violate securities law. Digital Chamber’s stated goal is to “promote the acceptance and use of digital assets” and blockchain tech.
Atkins has also expressed support for dismantling Dodd-Frank, which enhanced federal regulatory authority following the disastrous 2008 financial crisis.
—Rocio Fabbro contributed to this article
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