- Newly appointed acting SEC Chairman, Mark Uyeda, yesterday announced the creation of a task force to create clear regulation to guide the crypto industry.
- Pro-crypto SEC Commissioner, Hester Peirce has been appointed to lead the task force and regulatory framework development, which is expected to be a long-term undertaking.
- Uyeda criticised the SEC’s long held policy of ‘regulation through enforcement’ which he says has sewn confusion, limited innovation and incentivised fraud.
The newly appointed US Security and Exchange Commission (SEC) Acting Chairman, Mark Uyeda, yesterday announced the creation of a cryptocurrency-specific task force to be led by pro-crypto SEC commissioner Hester Peirce.
The purpose of the task force is to establish a new legal and regulatory framework for the crypto industry. It’s hoped the initiative will put an end to years of regulatory confusion under previous SEC Chair Gary Gensler and set the stage for turbo-charged innovation and broader adoption of blockchain technology.
Acting Chairman Uyeda said regulatory reform will be a long-term project and will involve close collaboration with the Congress and agencies such as the Commodity Futures Trading Commission (CFTC).
Task force leader Peirce said input from stakeholders would also be vital:
This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation.
Hester Peirce, Leader of SEC crypto taskforceThe task force marks an important first step toward fulfilling President Trump’s pledge to make the US the “crypto capital of the planet” (if you don’t include the strategic shitcoin reserve he established just before his inauguration).
Related: Acting Chairs of US SEC and CFTC Named: Here’s What They Mean for Crypto
The SEC Can Do Better, Says SEC
In his announcement Acting Chairman Uyeda didn’t pull his punches when it came to critiquing the regulator’s performance under previous Chair, Gary Gensler. In particular Uyeda criticised the SEC’s long standing policy of ‘regulation through enforcement’:
To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud.
Mark Uyeda, Acting SEC ChairmanThe Acting Chairman added that in his view “the SEC can do better”.
Stuart Alderoty, Ripple’s Chief Legal Officer and longstanding critic of the SEC’s approach to crypto, seized on Uyeda’s words to launch his own critique, posting to X / Twitter:
Thank you, Acting Chairman Uyeda, for saying it: The SEC’s war on crypto created ‘confusion about what is legal’ and ‘an environment hostile to innovation and conducive to fraud.’ Looking forward to working with the Crypto Task Force to undo the prior administration’s damage.
Stuart Alderoty, Ripple Chief Legal OfficerAim: Bring Clarity to Digital Assets Industry
According to Uyeda, the main aim of the task force will be to create clear regulation for the digital assets industry and reduce enforcement actions:
The Task Force’s focus will be to help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.
Mark Uyeda, Acting SEC ChairmanHe said the task force will “operate within the statutory framework provided by Congress and will coordinate the provision of technical assistance to Congress as it makes changes to that framework.”
Related: Trump’s America-First Crypto Play: XRP, Solana, USDC Could Edge Out Bitcoin
The selection of Commissioner Peirce to lead the task force is generally seen as a big positive for crypto. Peirce has a reputation as a crypto-champion based on her history of dissenting opinions on some of the regulator’s past anti-crypto decisions, earning her the sobriquet “Crypto Mom” in some circles. Peirce herself isn’t too keen on the nickname though, saying last year “I do take a little bit of an issue with the term ‘mom’, I’m not your mom”.
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