The U.S. Securities and Exchange Commission hosted a roundtable with legal and cryptocurrency experts to discuss the definition of securities in the context of digital assets.
Roundtable with Experts
A roundtable was held at SEC headquarters in Washington, bringing together legal experts and crypto industry figures to discuss the agency's evolving regulatory approach. Under the previous administration, the SEC's strategy was often criticized for a 'regulation by enforcement' approach, which some argued stifled innovation and failed to provide clear guidance to the industry.
Criticism of Previous Approach
Miles Jennings, General Counsel of a16z Crypto, criticized the SEC's previous regulatory efforts, arguing that they failed to fulfill the agency's core missions of investor protection, capital formation, and market efficiency. 'I don't think anyone can credibly argue that the last administration's approach to the industry accomplished any of the SEC's goals,' Jennings said. 'The bottom line is that the current approach is clearly a failure, and we have to do better.'
New Milestone in Regulation
The creation of the crypto task force marks a shift in the SEC's stance following the departure of former Chairman Gary Gensler and the transition to the new administration. Gensler had taken an aggressive stance by classifying most cryptocurrencies as securities. The SEC signaled a fresh start under Acting Chairman Mark Uyeda, who appointed Commissioner Hester Peirce, a longtime crypto advocate, to lead the new task force. 'This is a reboot of the Commission's approach to crypto regulation,' Peirce said.
The SEC roundtable demonstrated the agency's willingness to reassess and improve its cryptocurrency regulatory methods. New discussions and appointments indicate ongoing development and shifts in strategies for better understanding and managing digital assets.
