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The relationship between Wall Street’s top cop and the US cryptocurrency industry is improving after more than four years of friction.
On Tuesday, the Securities and Exchange Commission announced that it is leading efforts to establish a regulatory framework for digital assets with the creation of a new crypto task force.
The initiative, which will be led by Republican Commissioner Hester Peirce, was Acting President Mark Uyeda’s first official action following his appointment to the position by President Trump on Monday. Uyeda, a Republican commissioner, will serve in the role until Paul Atkins, Trump’s permanent pick to lead the agency, is confirmed by the Senate.
FOX Business was first to report in November that the task force was a possibility and that Peirce, often nicknamed “Crypto Mom,” had expressed interest in leading such a group.
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SEC Commissioner Mark Uyeda speaks at the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, September 17, 2024. (Al Drago/Bloomberg via Getty Images / Getty Images)
As FOX Business previously reported, the task force will work closely with industry stakeholders to create an open dialogue that will enable a friendlier regulatory environment.
Tuesday’s announcement says the task force will work to help the commission draw clear regulatory lines, provide realistic pathways to registration, develop sensible disclosure frameworks and judiciously deploy regulatory resources. ‘application. It will also coordinate with other federal agencies, including the Commodity Futures Trading Commission, which is poised to take a larger role in crypto regulation.
The SEC, under Biden President Gary Gensler, has filed more than 100 lawsuits against crypto players over the past four years as the commission attempted to bring the industry into compliance using the law enforcement. Many of the lawsuits involved credible allegations of fraud and manipulation, but others involved companies that failed to record their sales of digital assets as securities.
Industry players have long complained that the decentralized nature of cryptocurrencies and the blockchain technology they operate on prevents them from being regulated like traditional securities, i.e. stocks and bonds. They have frequently called on regulators and Congress to develop a new regulatory framework specific to digital assets.
Gensler, however, believed that traditional securities laws were sufficient to properly regulate the industry and that most digital assets except bitcoin were securities, suing companies that challenged this view by refusing to register with the commission.
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SEC Chairman Gary Gensler participates in a Financial Stability Oversight Board meeting at the U.S. Treasury July 28, 2023 in Washington, DC. The Board met to provide an update on the Board’s Climate Financial Risk Committee. (Kevin Dietsch/Getty Images/Getty Images)
President Trump has promised lighter regulations that will benefit developing sectors like artificial intelligence and cryptography. Since his election on November 5, he has appointed a handful of industry advocates to key leadership positions at Treasury, the SEC and the CFTC, and named venture capitalist David Sacks the first-ever “czar” cryptography and AI.
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Peirce and the Crypto Working Group already welcome public comments on regulation via email and will host roundtable discussions with industry participants in the future.
“This endeavor will take time, patience and a lot of hard work…” Peirce said in a press release announcing the initiative. “We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, promotes market integrity and supports innovation.”
