#SECCrypto2.0 #SECCrypto2.0

The U.S. Securities and Exchange Commission (SEC) has launched the "Crypto 2.0" initiative, aiming to establish a comprehensive regulatory framework for digital assets. Announced on January 21, 2025, Acting Chairman Mark T. Uyeda introduced a dedicated crypto task force led by Commissioner Hester Peirce. This task force's objective is to provide clarity on applying federal securities laws to the crypto market, recommend practical policy measures, and foster innovation while ensuring investor protection.

A significant aspect of the Crypto 2.0 initiative is the proposal to treat digital asset securities similarly to traditional securities, enforcing timely transaction reporting to enhance transparency. The SEC also plans to intensify oversight of off-chain transactions, such as over-the-counter trades and decentralized platform activities, which are considered high-risk and underregulated. To facilitate this, the SEC, in collaboration with the Commodity Futures Trading Commission (CFTC), proposes establishing a Digital Asset Transaction Repository (DART), serving as a centralized platform for monitoring digital asset securities transactions.

Additionally, the SEC supports creating a Presidential Cryptocurrency Task Force to coordinate federal agencies, streamline regulation, and reinforce consumer protection in the crypto ecosystem. This task force would likely include representatives from the SEC, CFTC, Treasury, IRS, and other key departments.

The Crypto 2.0 initiative represents a significant shift in the regulatory landscape for digital assets, emphasizing increased compliance obligations, particularly regarding transaction disclosure and reporting. Market participants should prepare for these changes as the SEC moves towards real-time digital asset surveillance, akin to systems in traditional finance.