SEC establishes new Crypto working group to construct a new regulatory framework?

Source: Blockchain Knights

The U.S. Securities and Exchange Commission (SEC) has announced the creation of a dedicated Crypto Task Force, led by Commissioner Hester Peirce.

The task force will reportedly provide a strong and transparent regulatory framework for digital assets.

The move reflects the SEC’s priority for proactive policymaking to bring greater regulatory clarity to the U.S. Crypto industry.

The Crypto Asset Task Force will focus on resolving long-standing ambiguities in the regulatory treatment of digital assets.

Historically, the SEC has relied primarily on enforcement actions to address issues in the Crypto asset space, which are often retroactive.

Most importantly, it may finally clarify which assets are securities and which are not.

Such clarifications are critical to resolving ongoing legal proceedings such as the SEC v. Ripple Inc. case.

The new Crypto Assets Task Force was announced by Mark Uyeda, who assumed the role of Acting Chairman of the SEC yesterday.

Uyeda will continue to lead the agency until Paul Atkins is formally appointed through the congressional process.

The task force will prioritize defining clear registration requirements and disclosure frameworks for Crypto entities while developing practical paths to compliance.

“This work will take time, patience, and a great deal of hard work to foster a regulatory environment that protects investors and supports innovation,” said Uyeda.

Overall, this move brings positive relief to the Crypto Assets community.

Yesterday, the new President of the United States was inaugurated without mentioning Crypto Assets and signing no Executive Orders, which was very disappointing.

The task force will work extensively with divisions within the SEC, industry stakeholders, and global regulatory peers such as the U.S. Commodity Futures Trading Commission. Its goal is to ensure a unified approach and reduce jurisdictional overlap.

Commissioner Peirce noted: "Success or failure depends on the opinions of a broad range of investors, academics and other relevant parties."

This is an important milestone for the US Crypto industry.

First, Commissioner Peirce, known as the "Mother of Crypto Assets," has been one of the biggest advocates of digital assets in the United States.Last year, she expressed extensive opinions on the shortcomings of the SEC's crackdown on the industry.

"It's really awesome that SEC Commissioner Hester Peirce has just been appointed to lead the Crypto Asset Task Force," wrote Zack Guzmán.

"When I interviewed her last month, she predicted three things that would happen under the leadership of the SEC that supports Crypto assets. The first of these is that the SEC may take action 'sooner' to give the green light to marking through ETFs, which would be a big deal."

As the Crypto asset industry continues to develop, the work of the task force is likely to influence global regulatory trends.

It may set a benchmark for other jurisdictions.

After Gary Gensler’s departure, several Crypto ETF applications have flooded the agency.  With regulatory clarity, the industry may see more alternative asset ETFs approved this year.

Overall, this is a bold step by the SEC that is expected to chart a new path for Crypto asset governance.