The United States Securities and Exchange Commission is reorganizing its crypto unit, reducing staff and shifting focus under new leadership to support digital asset growth.
Creation of the Crypto Task Force
Acting SEC Chair Mark T. Uyeda, known for his supportive stance on digital assets, initiated the creation of a dedicated crypto task force. Led by Commissioner Hester Peirce, the task force is tasked with developing policies that encourage innovation while ensuring investor protection. It aims to establish clearer guidelines for identifying digital assets that qualify as securities and provide ease of compliance for token issuers. It will also review registered token offerings and explore custody solutions for digital assets handled by investment advisers.
Policy Shift Under New Leadership
The SEC's regulatory approach has changed following President Donald Trump's re-election, transitioning from previous enforcement-heavy strategies to a more structured guidance approach. Gary Gensler's tenure, known for over 100 crypto enforcement actions, ended following Trump's re-election, allowing for a policy rethink. Paul Atkins, known for advocating a lighter regulatory touch, has been nominated to replace Gensler, likely continuing the shift towards structured guidance.
Objectives and Outlook
The SEC has launched a website for the crypto task force to collect public input from industry participants and investors. The platform allows for idea submissions and discussions on regulatory matters. Hester Peirce acknowledges the complexity of the process but is confident in crafting policies that balance industry growth with necessary oversight.
The SEC's reforms highlight a significant shift in its regulatory approach towards digital assets. The new strategy aims to create balanced policies, foster innovation, and uphold investor protection.
