Acting Chairman of the United States Securities and Exchange Commission (SEC) Mark Uyeda announced the launch of a Crypto Task Force “dedicated to developing a comprehensive and clear regulatory framework for cryptoassets.”
In a hint of the agency’s shifting approach to the digital assets sector for the second term of the newly sworn-in President Donald Trumplaunched the task force under the title “SEC Crypto 2.0.” It will be chaired by the SEC Commissioner Hester Peircea vocal advocate for the digital asset space.
“To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting new and untested legal interpretations along the way,” the regulator said in its Jan. 21 announcement. – Clarity about who should register and practical solutions for those who want to register have been elusive. The result has been confusion about what is legal, creating an environment hostile to innovation and conducive to fraud.”
According to the SEC, the task force will seek to address these concerns by working with commission staff and the public to put the agency on a “sensible regulatory path that respects the limits of the law.”
As for goals, the SEC said the purpose of the new group was to “draw clear regulatory lines, provide realistic pathways to registration, create sensible disclosure frameworks, and use regulatory resources wisely.”
The task force will operate within the statutory framework of Congress and provide technical assistance to Congress as it makes changes to that framework. This task will be coordinated with other federal departments and agencies, including Commodity Futures Trading Commission (CFTC).
“I look forward to the efforts of Commissioner Peirce to lead crypto regulatory policy, which involves multiple SEC divisions and offices,” said Acting Chairman Uyeda.
Commissioner Peirce, for his part, warned that the goals of the new task force will “take time, patience and a lot of hard work” to achieve.
“It will only succeed if the Task Force has input from a broad range of investors, industry participants, academics and other interested parties,” Peirce added. “We look forward to working hand-in-hand with the public to advance a regulatory framework that protects investors, facilitates capital formation, promotes market integrity and supports innovation.”
Richard Gabbert, Senior Advisor to the Acting Chairman, and Taylor Asher, Senior Policy Advisor to the Acting Chairman, will serve alongside Peirce as the task force’s Chief of Staff and Chief Policy Advisor, respectively.
The launch was met with a positive response from some notable digital currency advocates in Congress.
House Financial Services Committee Chairman French Hill (R-AR) was effusive in his praise of the task force, as well as what it signaled changing of the guard at the SEC.
“This is the first step in undoing the tremendous damage caused by former Chairman Gary Gensler and his regulatory oversight. This action sends a clear message to the world that when it comes to crypto, ‘America is back,'” Hill said in a post on January 21 at X. “I look forward to working with my colleagues in Congress and the Trump administration to provide long overdue regulatory clarity that will allow the digital asset ecosystem to thrive in the United States.”
At the same time, Rep. Lisa McClain (R-MI), in a textbook example of presidential boot-licking—a rhetorical device that will become all too common over the next four years— was keen to put credit where it’s due, says“President Trump’s Newly Created Crypto Task Force Will Bring Regulatory Clarity to the Industry.”
Changing the face of the SEC
The creation of the task force was one of the first priorities of Acting Chairman Uyeda after his appointment by President Trump on January 20 and stands as a strong indication of how the regulator will approach it digital asset space throughout Trump’s second term.
Uyeda, a Republican member of the SEC, took over from former chairman Gary Gensler, who shared views on Capitol Hill—largely downward biased lines— for his supposedly heavy-handed, regulatory approach to the digital asset space, as well as being widely criticized by some industry figures for similar reasons.
As for the latter group, Uyeda’s appointment likely reassured some of the more compliance-shy digital asset players in the market, as he is known to have previously expressed concerns about Gensler’s approach to regulation and compliance, as well as criticizing the failure –in his opinion—by the SEC to provide guidance on how companies can register with the agency.
To be precise, he called the agency’s policies and procedures over the past few years a “disaster for the entire industry” in October interview with Fox Business.
Crypto boss Trump was another vocal critic of the SEC’s latest approach to monitoring digital assets. He has moved quickly since the election win last November to begin creating a more “accommodating” environment for the industry.
In addition to Uyeda’s temporary appointment and the launch of the new Crypto Task Force led by “Crypto mom” Peirce, Trump has already selected a pro-business, pro-innovation candidate to lead the SEC permanently.
In an announcement on December 4, Trump nominated Paul Atkins for SEC chairmanhighlighting his track record as a former SEC Commissioner, as well as his experience in the private sector, write via Truth Social:
“Paul is the CEO and founder of Patomak Global Partners, a risk management consulting firm. As co-chair of the Digital Chamber’s Token Alliance since 2017, he has worked with and studied the digital asset industry. A former SEC Commissioner from 2002-2008, Paul strongly advocated for transparency and protection of investors.”
He added that Atkins “recognizes that digital assets and other innovations are critical to making America greater than ever before.”
The nomination was not met with universal cheer, with some noting it as a characteristically pro-digital asset choice and a clear left turn away from Gensler’s consumer protection-focused contraction of crypto wild west.
Senator Elizabeth Warren (D-MA), who will serve as ranking member of the Senate Banking, Housing and Urban Affairs Committee during the next Congress, marked Atkins’ dubious record in the financial industry, saying she was:
“Concerned about putting at the helm of the SEC a Wall Street lobbyist whose main contribution during the last financial crisis was to protest fines against the giant corporations that defrauded investors.”
But others were more optimistic about the nomination, suggesting that Atkins actually understands the need for controls.
“It’s a good choice. It’s a relief. I think he’s very solid philosophically,” Sheila Bair, former chairman of the FDIC and former assistant secretary of the U.S. Treasury, said in a Dec. 4. interview with news commentary show Market Domination.
Blair went on to suggest that, while Atkins is “very much in line with the president-elect,” he is also “a seasoned hand” and “understands the need for regulation.”
This sentiment was echoed by Sen. Kirsten Gillibrand (D-NY), who indicated she would likely support Atkins’ nomination.
“He has the right experience, and I think he’s a commissioner who would work well with Congress,” she said told Politico on December 6.
Atkins still has some hoops to jump through before taking office. After the president nominates a candidate for SEC chairman, the nomination is sent to the Senate, where the Banking Committee reviews it. The nominee then undergoes a confirmation hearing, followed by a committee vote. If approved, Atkins’ appointment will go to the full Senate for debate and a final vote, with a simple majority required for confirmation. Once confirmed, the nominee is sworn in and finally takes office.
Of course, with a Republican majority in the Senate and some favorable Democrats like Gillibrand, much of this is a formality. What is less certain is what his stewardship of the SEC will look like.
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