Crypto Task Force Details Plan, Pushes for Clearer Regulations

The SEC’s newly formed Crypto Task Force aims to bring long-overdue regulatory clarity to the industry, according to Commissioner Hester Peirce, often referred to as "Crypto Mom."

The initiative will shift some enforcement and policy decisions away from the SEC’s direct oversight, introducing both risks and opportunities for consumers.

Peirce, appointed by Acting Chair Mark Uyeda to lead the task force, outlined ten key priorities.

These include clarifying whether cryptocurrencies qualify as securities or commodities, establishing a more practical path for token registration, and determining the regulatory status of crypto lending and staking programmes.

She also emphasized the need for transparency regarding crypto ETFs, with new applications for XRP, Solana, and Dogecoin funds under review, along with proposals to introduce staking rewards for ETF holders.

In contrast to the previous administration’s enforcement-driven approach, Peirce highlighted the task force’s commitment to providing clear regulatory guidance.

The initiative marks a significant shift following former SEC Chair Gary Gensler’s departure.

Just two days after its creation, the SEC rescinded its contentious Staff Accounting Bulletin 121, a move Peirce hailed as a milestone in reshaping crypto oversight under the new administration.

Peirce Criticises SEC’s Past, Asks for Patience

Peirce offered a sharp critique of the SEC’s past approach to crypto regulation under Gensler, describing it as a decade-long road trip riddled with detours and unnecessary risks.

Now, under the Crypto Task Force, she envisions a more constructive and less adversarial regulatory path.

Peirce said:

“On that last trip, the Commission refused to use regulatory tools at its disposal and incessantly slammed on the enforcement brakes as it lurched along a meandering route with a destination not discernible to anyone.”

Peirce acknowledged the legal ambiguity and commercial impracticality that characterised the previous administration’s enforcement-driven strategy, emphasizing that unwinding its legacy will take time.

She noted:

“Many cases remain in litigation, many rules remain in the proposal stage, and many market participants remain in limbo. Determining how best to disentangle all these strands, including ongoing litigation, will take time. It will involve work across the whole agency and cooperation with other regulators. Please be patient. The Task Force wants to get to a good place, but we need to do so in an orderly, practical, and legally defensible way.”

While the SEC is shifting toward a new regulatory paradigm, its core mission—protecting investors—remains unchanged.

She continued:

“One of the reasons the U.S. capital markets are so robust, efficient, and effective is that we have rules designed to protect investors and the integrity of the marketplace, and we enforce those rules. We do not tolerate liars, cheaters, and scammers. As the Task Force works to help develop this regulatory framework, it will give careful consideration to antifraud protections. If the Commission spots fraud that lies outside our jurisdiction, it can refer the matter to a sister regulator. If it does not fall within any regulator’s jurisdiction, the Commission can bring that gap to Congress’s attention.”

She also noted the overwhelming volume of policy and paperwork requests now facing the Commission, highlighting the complexity of reshaping crypto oversight.

The Task Force’s priorities include reassessing which digital assets should be classified as securities or commodities, defining clear regulatory boundaries, and engaging with market participants interested in tokenising securities or integrating blockchain into traditional finance.

Additionally, the group is working to establish appropriate custody rules for investment advisers managing digital assets.

Despite its more open approach, Peirce made it clear that the SEC will not tolerate fraud or noncompliance.

While regulatory clarity should not be mistaken for an endorsement of any asset, the Commission will take a more hands-off stance where appropriate—leaving economic freedom in the hands of market participants.

However, Peirce cautioned that this shift comes with inherent risks, particularly for uninformed investors.

The SEC may be changing, but companies operating in the space should not expect a free pass, as enforcement remains a critical pillar of its oversight.

She warned:

“We’re not endorsing any tokens, coins, or products. There is no SEC stamp of approval. People can buy whatever they want, but they can’t expect us to bail them out when prices crash.”

Crypto Task Force Website Goes Live, Feedback Welcomed

The SEC’s new platform is officially live, offering a direct channel for public input as the agency works to resolve over a decade of regulatory ambiguity in crypto.

Open to developers, investors, and industry stakeholders, the site allows users to request meetings or submit written feedback, with public comments posted online unless marked confidential.

However, this is not a whistleblower or complaint portal—such matters must be directed to the SEC’s Complaint Center via its official online form or by mail.

The platform provides clear guidelines on submitting information, including instructions for handling confidential data and redacting sensitive materials.

The new crypto-focused US SEC page detailed:

“Material received will be posted without modification; the Commission does not edit personal identifying information from submissions. You should provide only written input that you wish to make available publicly.”

Additionally, the Crypto Task Force has introduced a dedicated email—[email protected]—for further engagement with the digital asset community.