The U.S. Securities and Exchange Commission (SEC) has initiated the "Crypto 2.0" initiative, aiming to establish a comprehensive and clear regulatory framework for digital assets. Announced on January 21, 2025, this initiative includes the formation of a new Crypto Task Force led by Commissioner Hester Peirce.
Key Objectives of the Crypto 2.0 Initiative:
Clear Regulatory Guidelines: The task force seeks to delineate explicit regulatory boundaries for digital assets, providing realistic pathways for entities to register and comply with SEC regulations.
Enhanced Oversight of Off-Chain Transactions: A significant focus is on regulating off-chain trade activities, such as over-the-counter (OTC) trades and decentralized platform transactions, which are considered high-risk and currently underregulated.
Digital Asset Transaction Repository (DART): The SEC proposes collaborating with the Commodity Futures Trading Commission (CFTC) to establish DART, a centralized platform for monitoring all digital asset securities transactions, thereby improving market transparency.
Market Structure and Investor Protection: The initiative aims to update market structure norms and amend the Securities Exchange Act to address the evolving digital asset landscape, ensuring robust investor protection.
In addition, the SEC supports the creation of a Presidential Cryptocurrency Task Force. This task force would coordinate efforts among federal agencies, including the SEC, CFTC, Treasury Department, and Internal Revenue Service (IRS), to streamline regulation and enhance consumer protection in the crypto ecosystem.
Commissioner Peirce has emphasized the importance of public engagement, inviting input from investors, industry participants, academics, and other stakeholders to shape the regulatory framework effectively.
The Crypto 2.0 initiative represents a significant shift in the SEC's approach to digital asset regulation, moving from reactive enforcement to proactive policy development aimed at fostering innovation while ensuring investor protection.