#SECCrypto2.0 The U.S. Securities and Exchange Commission (SEC) has unveiled its Crypto 2.0 Initiative, signaling a robust regulatory framework for digital asset securities. This initiative aims to enhance transparency and investor protection in the digital asset market, with a particular emphasis on off-chain trades. The SEC has proposed the establishment of a Presidential task Force on Cryptocurrency to oversee and coordinate federal agency activities related to digital assets.

The SEC's proposal includes amendments to the Securities Exchange Act, ensuring that digital asset securities purchases, whether through on-blockchain or off-blockchain systems, adhere to the same reporting rules as traditional securities. This move is designed to create a more transparent digital asset market and provide better investor protection through a formal regulatory structure. The agency has also recognized the need for intensified monitoring of activities outside chain boundaries, including over-the-counter (OTC) trades and communications on decentralized platforms, which are considered high-risk areas lacking proper oversight.

To achieve this, the SEC has proposed the creation of the Digital Asset Reporting and Tracking system (DART). This system, in collaboration with the Commodity Futures Trading Commission (CFTC), will serve as a unified hub for storing digital asset securities transaction data. The goal is to provide regulators with instant access to transaction information, thereby strengthening market oversight and regulatory compliance functions.

The Crypto 2.0 Initiative also plans to amend the Securities Exchange Act to align digital asset securities trading with current financial market structures. This will impose substantial regulatory requirements on crypto exchanges, decentralized finance (DeFi) platforms, and token issuers, who will need to adhere to stronger reporting and disclosure standards. The establishment of a Presidential Cryptocurrency Task Force, comprising the SEC, CFTC, Treasury Department, and Internal Revenue Service (IRS)