The launch of the task force marks a major turnaround from the SEC’s approach to crypto under Gensler, which often received staunch pushback for what many called a “regulation by enforcement” approach, given the agency filed enforcement actions against major crypto firms and exchanges.
Uyeda said at an event in December that the SEC could better delineate which crypto tokens it has jurisdiction over, and the agency news release struck a similar tone.
“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,” the news release said. “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.”
Peirce was repeatedly critical of the SEC’s crypto approach under Chair Gensler, stating in December that “we have a big tool kit, and we've always gravitated toward enforcement in this area as our tool of choice.”
The focus of the task force will be to help the SEC “draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously,” according to the news release.
The task force will work with Congress, the Commodity Futures Trading Commission, and state and international counterparts, as well.
“This undertaking will take time, patience, and much hard work,” Peirce said in the release. “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.”
The task force plans to hold roundtables in the future, according to the release, but for now is asking public input to be sent via email to [email protected].