On January 21, Reuters reported that the new leadership of the U.S. Securities and Exchange Commission announced the formation of a task force to develop a regulatory framework for crypto assets. This marks the first significant action by the new administration to revamp crypto policy.
President Trump, known for his campaign promises to be a "crypto president," has vowed to reverse the regulatory crackdown on the industry initiated by the former President Joe Biden's SEC. This crackdown involved lawsuits against several crypto companies, including Coinbase and Kraken, for alleged violations of SEC rules.
The companies have refuted these accusations, asserting that the current SEC regulations are not suitable for cryptocurrencies. They argue that determining when a crypto token qualifies as a security, and consequently falls under SEC oversight, is uncertain. The industry has long called for clear guidelines from the SEC regarding cryptocurrencies.
The recent initiative by Republican Commissioner Mark Uyeda, who was appointed as the acting SEC chair by Trump, and fellow Republican Commissioner Hester Peirce, represents a significant advancement for the crypto industry under the new administration.
According to Uyeda's office, the Task Force's objective is to assist the Commission in establishing precise regulatory boundaries, devising feasible registration procedures, formulating sensible disclosure frameworks, and deploying enforcement resources appropriately.
The move indicates the beginning of Trump's overhaul of crypto policies, which will involve initiating the rule-making process. Additionally, executive orders are expected soon to reduce regulatory oversight of the crypto industry and encourage the adoption of digital assets.
In response to this development, Jonathan Jachym, global head of policy at Kraken, expressed optimism, stating, "We are encouraged by this meaningful first step towards real policy solutions and ending the regulation by enforcement era of the past." Kraken looks forward to intensifying policy engagement to achieve regulatory clarity.
The news of the crypto-friendly administration has led to a surge in Bitcoin prices, reflecting investor enthusiasm.
The task force will also aid legislators in drafting crypto-related laws and collaborate with other federal agencies, such as the Commodity Futures Trading Commission, as well as state and international organizations, as per the SEC's statement.
A senior executive at Coinbase praised the action, remarking, "We have been urging policymakers for years to provide regulatory guidance for crypto. The response over the past four years has been consistently negative. This marks a new beginning."