#SECCrypto2.0

The U.S. Securities and Exchange Commission (SEC) recently launched the “Crypto 2.0” initiative with the goal of establishing a more robust and transparent regulatory framework for digital assets. This proposal seeks to align the regulation of digital securities with that of traditional securities, requiring timely transaction reporting to improve transparency and protect investors.

A key focus of Crypto 2.0 is stricter oversight of off-chain transactions, such as those conducted through over-the-counter (OTC) trading or decentralized platforms. The SEC believes these activities pose high risks and are insufficiently regulated and is seeking to implement measures to mitigate potential market abuses.

Furthermore, the SEC has proposed the creation of a Presidential Cryptocurrency Task Force to coordinate the activities of federal agencies related to digital assets. This initiative reflects an effort by the current administration to reform cryptocurrency policies and establish clearer regulations for the sector. 

SEC Commissioner Hester Peirce leads this working group and has emphasized the importance of developing precise and practical regulations for cryptocurrencies, moving away from enforcement measures as a substitute for clear regulatory policies. 

This initiative marks a significant shift in the SEC's regulatory approach to digital assets, aiming to balance innovation in the cryptocurrency market with investor protection.