WASHINGTON, D.C.: The U.S. Securities and Exchange Commission (SEC) announced this week that it has created a task force to develop clear rules for cryptocurrencies.
This is the first major step by President Donald Trump’s new administration to change how crypto assets are regulated.
Trump, who called himself a “crypto president” during his campaign, promised to reverse the SEC’s crackdown on the industry under former President Joe Biden. Biden’s SEC had sued companies like Coinbase and Kraken, accusing them of breaking its rules. The companies denied the allegations, saying the SEC’s rules don’t fit cryptocurrencies and that it’s unclear when a crypto token should be treated as a security.
The crypto industry has been asking the SEC for clear regulations for years. On January 21, acting SEC Chair Mark Uyeda, appointed by Trump, and Commissioner Hester Peirce announced the creation of the task force. This is seen as a win for the crypto industry under the new administration.
The task force will focus on setting clear guidelines, offering realistic ways for crypto companies to register, creating better disclosure rules, and using enforcement carefully, according to Uyeda’s office.
Reports suggest that Uyeda and Peirce plan to kickstart Trump’s crypto policy changes, including drafting new rules. Trump is also expected to issue executive orders to reduce regulatory pressure on the crypto industry and encourage the use of digital assets.
Kraken’s global head of policy, Jonathan Jachym, welcomed the announcement, calling it a positive step toward ending the SEC’s past approach of regulating through enforcement. He said Kraken looks forward to working on creating clearer policies.
On January 20, Bitcoin hit a record high of US$109,071 as investors celebrated the new crypto-friendly administration.
The SEC added that the task force will also help lawmakers draft crypto-related laws and coordinate with other federal agencies, state regulators, and international bodies.
Coinbase’s Chief Legal Officer Paul Grewal also praised the move, saying, “For years, we asked for clear crypto rules, and the answer was always ‘no.’ This is a fresh start.”
