Key takeaways
- The new SEC Crypto Task Force, led by Hester Peirce, aims to develop new SEC crypto rules to provide clear frameworks for crypto assets and financial institutions
- The task force is moving quickly and has already repealed SAB121, which previously required financial firms to record digital assets as liabilities.
- A 10-point plan has been outlined for initial work to address areas including crypto compliance under SEC, securities status, token offering, custody solution and cross-border experimentation.
- Dubbed “Crypto 2.0,” the new approach seeks to provide clarity and offer realistic pathways to registration, spark innovation, and maintain necessary oversight.
Crypto is in flux — there’s nothing new there. It’s the default setting for the industry. Government support for crypto? That is novel.
It’s no secret that Donald Trump is the first pro-crypto US president. He announced ideas for strategic reserves, launched a memecoin, and issued a digital asset executive order.
Most significantly, he is overhauling the Securities and Exchange Commission. Gary Gensler, crypto’s public enemy No. 1, is out, and Mark Uyeda is in as a more amenable acting chairman.
The regime change is signaling quick action to improve regulatory clarity and spark growth in the US. Uyeda has already launched a new SEC Crypto Task Force to develop a comprehensive framework for crypto assets.
Did you know? The SEC’s prior track record of issuing retroactive enforcement led to a hostile environment that stifled innovation and was conducive to fraud, according to many in the crypto industry.
What is the SEC Crypto Task Force?
Uyeda has already launched a new SEC Crypto Task Force to develop a “comprehensive and clear framework for crypto assets.” The news was announced on Jan. 21, 2025, and the fresh approach to regulation is being dubbed as “Crypto 2.0.”
Hester Peirce leads the task force, which aims to draw clear regulatory lines, offer realistic pathways to registrations, create sensible disclosure processes, and deliver enforcement resources judiciously.
Peirce has already earned the nickname “Crypto Mom” in the media thanks to her outspoken dissent against SEC legal action against crypto firms. Placing her at the helm of the task force confirms the switch in direction for new SEC crypto regulations.
It must be emphasized that it isn’t a free-for-all crypto industry but that it’s working to give clarity on the registration and requirements for virtual asset organizations.
Commissioner Peirce has explained that she will work with a wide range of industry participants, investors and academics, among others, to bring innovative solutions to the table.
“We will collaborate with others across the federal government, with state securities regulators and with our international counterparts. We invite builders, enthusiasts and skeptics to engage with us to figure out what the final rules should be and what interim steps might help to foster innovation in the meantime,” said Peirce in an SEC statement.
In line with this progressive approach, Paul Atkins, nominated to serve as the 34th chairman of the SEC, is also expected to play a key role in shaping the future of the agency’s stance on emerging technologies like blockchain and cryptocurrency.
Known for his balanced approach to regulation, Atkins has long championed innovation, especially within the financial sector. He has consistently advocated for a market-driven regulatory environment, supporting the idea that innovation should not be stifled by overly burdensome regulations.
His focus on transparency, consumer protection and growth is likely to complement Peirce’s efforts, making for a dynamic and forward-looking SEC leadership team in the years to come.
Did you know? The first-ever SEC crypto case was in 2013 when it targeted Trendon Shavers and Bitcoin Savings and Trust (BTCST) for operating a Ponzi scheme that involved 700,000 Bitcoin. A Bitcoin (BTC) sum worth $4.5 at the time but now worth around $70 billion in 2025.
What will the SEC Task Force on cryptocurrency do?
In such a complex industry that spans innovative technology and finance, regulatory clarity is a broad subject to address. And while it will take a long time to get out of the current “mess,” the task force is already operational and making changes.
The first milestone reached is the repeal of the Staff Accounting Bulletin 121 (SAB 121). This rule previously required financial firms to record digital assets as liabilities on their balance sheets. It was a controversial rule that discouraged companies from holding crypto for their customers. A move that took a matter of days from the inception of the task force.
“Bye, bye SAB 121! It’s not been fun,” wrote the Crypto Task Force leader on X.
On Feb. 4, 2025, Commissioner Peirce delivered her Journey Begins statement, which outlined a 10-point plan as the task force’s focus over the coming months. It marks further movement toward more practical regulation. Initially, the key changes in SEC crypto policy will address:
- Security status: The task force is examining various types of digital assets to understand how they fit into current securities law. This is a fundamental part of their work to resolve a sea of questions and confusion about the status of cryptocurrency.
- Scoping out: Identifying what areas fall inside and outside of the SEC’s jurisdiction will help the commission know where their focus should lie when it comes to enforcement action. As a first step, it is welcoming no-action letters and communications with regard to specific circumstances and questions. This aims to deliver a better understanding of the commission’s thinking to the public.
- Coin and token offerings: New temporary rules are being considered for initial coin offerings (ICOs). They would give temporary relief for issuers of new coins and tokens, both prospectively and retroactively. Issuers would need to give specific information about an offering and work with the commission in case of fraud allegations. With the right conditions met, the tokens could then be considered non-securities and traded freely without SEC registration.
- Registered offerings: Discussions about modifying existing routes to registrations for token offerings will take place with staff. This includes Regulation A and crowdfunding to give people wanting to register a token a viable path.
- Special purpose broker-dealer: Special Purpose Broker-Dealers (SPBDs) are brokers specifically for certain types of transactions or assets, including digital assets. Regulators issue the current no-action statement for SPBDs to indicate they will take no enforcement action in certain circumstances. This statement might be expanded to cover security crypto assets alongside non-security crypto assets.
- Custody solutions for investment advisers: The task force promises to work with investment advisers to offer them a workable framework to safely, practically and legally custody client assets.
- Crypto-lending and staking: Clarity around crypto staking and lending programs needs to be established. The SEC’s scope will be looked at to learn if it falls under securities law and how these platforms would be regulated consistently under current laws.
- Crypto exchange-traded products: Growing demand for crypto ETFs requires a straightforward approach to approving or rejecting the applications. This work also aims to consider modifications to current exchange-traded funds (ETFs) and how features like staking are taken into account.
- Clearing agencies and transfer agents: Organizations responsible for settling securities transactions and processing stock transfers will get attention from the task force. Specifically, they will look at how blockchain technology can integrate with traditional securities to be represented as blockchain tokens.
- Cross-border sandbox: International projects could benefit from help with cross-border experimentation with a view to building more long-term approaches to managing the global nature of blockchain tech.
Did you know? Former SEC Chair Gary Gensler was seen as an enemy of crypto and stepped down on Jan. 20, 2025 — the day President Donald Trump, who promised to fire Gensler, took office for his second term.
SEC crypto oversight changes signal a significant shift
The new approach to SEC crypto rules signals a significant shift in the regulatory process and landscape.
There’s a strong message being sent: The SEC Crypto Task Force will work with crypto institutions, not against them. The overhaul of SEC crypto oversight is likely to have far-reaching implications for the industry. There is hope from many that it will foster growth while retaining necessary safeguards.