Mark Uyeda, commissioner at the US Securities and Exchange Commission (SEC), speaks during the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, US, on Tuesday, Sept. 17, 2024.
Al Drago | Bloomberg | Getty Images
The Trump administration took its first steps Tuesday toward an expected lowering of regulatory barriers for cryptocurrency.
In a long-awaited move from the digital assets industry, the Securities and Exchange Commission announced that acting Chair Mark Uyeda has launched a “crypto task” force aimed at “developing a comprehensive and clear regulatory framework for crypto assets.”
During the presidential campaign, Trump promised a crypto-friendly administration for the $3.7 trillion industry.
Though Uyeda announced the initiative, it will be led by SEC Commissioner Hester Peirce. Uyeda is holding the chair set until Paul Atkins gets through the confirmation process and providing enforcement resources.
According to the SEC announcement, the panel’s task will be to develop a clear set of rules while also addressing issues regarding registration of coins
“We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation,” Peirce said.
Bitcoin rallied on the announcement, up some 2.4% to more than $106,000.
Just prior to his inauguration, Trump underlined his support for digital currencies by releasing his own meme coin, called $TRUMP, while first lady Melania Trump, called $Melania. Both tokens saw quick surges in price before turning sharply lower.
The White House’s view on crypto differs sharply from when Joe Biden served as president. Then-SEC Chair Gary Gensler was viewed as an enemy of the industry.
During Gensler’s time at the commission, he resisted efforts to establish crypto exchange-traded funds, endorsed tough accounting policies and filed enforcement cases against industry leaders.
“Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud,” the commission’s announcement said. “The SEC can do better.”
The task force intends to hold public hearings and solicit input from the industry. It will work with federal departments and agencies, including the Commodity Futures Trading Commission.
“This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties,” Peirce said.