The U.S. Securities and Exchange Commission's crypto task force recently held its inaugural public meeting with experts to discuss the application of securities laws to digital assets, coinciding with efforts by the Trump administration to revamp cryptocurrency regulations.
Participants in the roundtable included John Reed Stark, former chief of the SEC's Office of Internet Enforcement; Miles Jennings, general counsel for Andreessen Horowitz's crypto arm, a16z; and former SEC Commissioner Troy Paredes. Republican SEC Commissioner Hester Peirce is leading the task force, which is tasked with developing rules and guidance for the crypto sector.
Peirce remarked on the significance of this meeting, stating, "Spring signifies new beginnings and we have a new beginning here, a restart of the commission's approach to crypto regulation."
The crypto industry has often clashed with regulators over how federal securities laws apply to digital assets, with many asserting that crypto tokens are more similar to commodities. Tokens classified as securities would necessitate registration with the SEC and compliance with specific investor disclosure requirements.
The President, who campaigned on the promise to be a "crypto president," has vowed to reverse the industry's crackdown initiated by former President Biden's SEC, which sued several crypto companies, including Coinbase, alleging violations of SEC regulations. The new leadership at the SEC has upheld many of these cases.
During the meeting, the task force deliberated the need for a distinct regulatory framework for crypto tokens, separate from the SEC's traditional oversight of securities such as equities.
Jennings advocated for a "technology-neutral" approach, emphasizing the importance of distinguishing systems like Ethereum from traditional equities like Apple.
In contrast, some participants, including Democratic SEC Commissioner Caroline Crenshaw, voiced concerns that the regulator might ease rules for cryptocurrencies by permitting them to operate under a different regime. Crenshaw warned, “Modifying the law to facilitate the success of a chosen product category is fraught with risk, with potential consequences not only for regulatory protections within that category but also for other market areas governed by the same laws.”
The task force's first roundtable is part of broader efforts by Trump to overhaul cryptocurrency policies. Earlier this month, he signed an executive order regarding the regulation of cryptocurrencies and convened industry leaders at the White House.