The new SEC leadership said Tuesday it created a task force to develop a regulatory framework for crypto assets, the first major action of President Donald Trump’s new administration to overhaul crypto policy.
Trump’s campaign promises to become “crypto president” who promises to reverse industry crackdowns under former President Joe Biden’s SEC, which sued multiple companies including Coinbase and Kraken cryptocurrency companies, claiming they violated their rules.
The two companies denied the allegations, believing that the SEC rules are not suitable for cryptocurrencies, and it is not clear when crypto tokens may be eligible for security, so they are subject to the SEC’s supervision. For years, the industry has called on the SEC to formulate clear cryptocurrency rules.
Republican Commissioner Mark Uyeda’s move on Tuesday, Trump’s appointment of acting SEC chairman on Monday, and Republican Commissioner Hester Peirce marks the first policy victory for the cryptocurrency industry under the new administration.
“The focus of the task force will be to help the committee draw clear regulatory lines, provide realistic avenues for registration, develop a wise disclosure framework and deploy law enforcement resources wisely,” Uyeda’s office said in the announcement.
Reuters reported this month that Uyeda and Peirce are expected to launch an overhaul of Trump’s crypto policy, including the process of starting a rule-making process. Trump is also expected to issue execution orders soon to reduce regulatory scrutiny of the crypto industry and help promote adoption of digital assets through, Reuters and other media reports.
“This makes sense first step towards a real policy solution and ends regulations through past law enforcement eras,” Jonathan Jachym, head of global policy at Kraken, said in an emailed statement. “We look forward to accelerating our policy participation…to establish clarity of regulations.”
Bitcoin hit $109,071 (approximately Rs 94.4 lakh) on Monday after investors were excited about the new crypto-friendly government.
The task force will also help legislators coordinate with other federal agencies, such as the Commodity Futures Trading Commission and state and foreign agencies, as they draft legislation for crypto-related legislation, the SEC added.
Coinbase executives also praised the move.
“We have been saying that we have helped us over the years by setting rules for cryptocurrencies. The answers have been shocking over the past four years,” Paul Grewal, the company’s chief legal officer, said in a telephone interview. ‘No’. ‘ “This is a new day.”
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