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The relationship between Wall Street’s top cop and the US cryptocurrency the industry is recovering after more than four years of friction.
on Tuesday, Securities Commission announced that it is leading efforts to establish a regulatory framework for digital assets by creating a new crypto working group.
The initiative, which will be led by Republican Commissioner Hester Peirce, was Acting Speaker Mark Uyeda’s first official action after being appointed to the position. President Trump on Monday. Uyeda, a Republican commissioner, will serve in the role until the Senate confirms Paul Atkins, Trump’s permanent pick to lead the agency.
FOX Business was first to report in November that a task force is possible, and Hester Peirce, affectionately known by the industry as “Crypto Mom,” has expressed interest in leading such a group.
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SEC Commissioner Mark Uyeda speaks during the 2024 Quality of Financial Markets Conference at Georgetown University in Washington, DC on September 17, 2024. (Al Drago/Bloomberg via Getty Images/Getty Images)
As previously announced, the task force will work closely with the Commission and draw on input from industry participants, including business leaders, investors, legal experts and academics, to better understand how the $3.5 trillion industry should be regulated. It will also coordinate with other federal agencies, including the Commodity Futures Trading Commission.
The SEC, under Biden chairman Gary Gensler, who resigned from the agency on Monday, has launched a series of legal actions over the past four years as the commission has tried to bring the sector into compliance through enforcement.
Industry participants have long complained that the decentralized nature of cryptocurrencies and the blockchain technology they run on makes them impossible to regulate like traditional securities, ie. stocks and bonds. They often called regulators and Congress develop a new regulatory framework specific to digital assets.
Gensler, however, believed that traditional securities laws were sufficient to regulate crypto and that most digital assets except bitcoin are securities, suing companies that challenged this position by refusing to register with the commission.
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SEC Chairman Gary Gensler attends a meeting of the U.S. Treasury Department’s Financial Stability Oversight Council on July 28, 2023 in Washington, DC. The Council met to provide an update on the Council’s Committee on Climate-related Financial Risks a (Kevin Dietsch/Getty Images/Getty Images)
President Trump, on the other hand, has promised a lighter regulatory touch to benefit emerging industries like artificial intelligence and crypto. Since his election on November 5, he has appointed several industry advocates to key leadership positions at the Treasury Department, the SEC and the CFTC, and has named venture capitalist David Sacks as the first crypto and AI ‘czar’.
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Peirce and the Crypto Task Force are already accepting regulatory input from the public via email and will hold roundtables with industry participants in the future.
“This undertaking will take time, patience and a lot of hard work…” said Peirce ua press release announcing the initiative. “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.”
