The SEC's cryptocurrency task force held its first public meeting on Friday. The meeting focused on the application of securities laws to digital assets as the Trump administration seeks to reshape cryptocurrency regulations.
The roundtable included John Reed Stark, the former head of the SEC's Internet Enforcement Office, Miles Jennings, the general counsel for the crypto arm of Andreessen Horowitz, a16z, and former SEC Commissioner Troy Paredes. Hester Peirce, the Republican commissioner at the SEC, leads the task force responsible for drafting rules and guidelines for the cryptocurrency sector.
Peirce stated that the committee's approach to regulating cryptocurrencies is undergoing a reboot, symbolizing a new beginning. The cryptocurrency industry has repeatedly disagreed with regulators over the interpretation of federal securities laws for digital assets, with many arguing that cryptocurrency tokens are more similar to commodities. If tokens are classified as securities, companies will need to register with the SEC and disclose certain information to investors.
President Donald Trump, who promised to be the 'crypto president', pledged to reverse the industrial crackdown that occurred under the Securities and Exchange Commission during President Joe Biden's administration. The SEC under Biden sued several cryptocurrency companies, including Coinbase and Kraken, claiming they violated its rules. The new leadership of the SEC has agreed to withdraw or suspend many of these cases.
The task force discussed on Friday whether cryptocurrency tokens require a new and distinct regulatory framework, separate from how the SEC oversees securities like stocks.
