SEC Crypto Task Force Launches with Hester Peirce’s Vision

The U.S. Securities and Exchange Commission (SEC) has launched its Crypto Task Force website, featuring a comprehensive statement from Commissioner Hester Peirce, who leads the initiative. In her address, Peirce reflects on the evolution of road trips—from the days of paper maps and radio to modern technology—as an analogy for the SEC’s journey with cryptocurrency regulation.

Hester Pierce Latest Pro-Crypto Move

Peirce acknowledges the SEC’s past challenges in navigating the crypto landscape, noting that the Commission “refused to use regulatory tools at its disposal and incessantly slammed on the enforcement brakes as it lurched along a meandering route with a destination not discernible to anyone.” She emphasizes the need for patience as the Task Force works to develop a clear regulatory framework.

She stated, “It took us a long time to get into this mess, and it is going to take us some time to get out of it.” Further, the Commissioner outlined the Task Force’s commitment to fostering innovation while protecting investors.

She asserts, “The Task Force wants to travel to a destination where people have great freedom to experiment and build interesting things, and which will not be a haven for fraudsters.” Peirce also clarifies that the initiative should not be seen as an endorsement of any specific cryptocurrency, cautioning, “The new commitment to a better regulatory environment should not be viewed as an endorsement of any crypto coin or token.”

Focus Areas For The Crypto Task Force

The statement details several focus areas for the Task Force, including:

• Security Status: Examining various types of crypto assets to determine their status under securities laws.
• Scoping Out: Identifying areas that fall outside the SEC’s jurisdiction and welcoming requests for no-action letters to provide clarity.
• Coin & Token Offerings: Considering temporary relief for coin or token offerings that meet specific information and disclosure requirements.
• Registered Offerings: Exploring modifications to existing paths to registration, such as Regulation A and crowdfunding, to facilitate token offerings.
• Special Purpose Broker Dealer: Evaluating updates to the special-purpose broker dealer no-action statement to cover broker-dealers that custody both crypto asset securities and non-securities.
• Custody Solutions for Investment Advisers: Working with investment advisers to establish a regulatory framework for the custody of client assets.
• Crypto Lending & Staking: Providing clarity on the applicability of securities laws to crypto-lending and staking programs.
• Crypto ETPs: Issuing clear statements on the approval or disapproval process for new types of crypto exchange-traded products.
• Clearing Agencies & Transfer Agents: Addressing the intersection of crypto with clearing agency and transfer agent rules.
• Cross-Border Sandbox: Facilitating international collaboration on crypto projects through limited-scale, temporary experimentation.

Moreover, Peirce invites public engagement, encouraging individuals to visit the Crypto Task Force’s webpage to stay informed and participate in the ongoing dialogue.