SEC's Crypto Task Force: Key Priorities and Regulatory Roadmap
The Crypto Task Force of the U.S. Securities and Exchange Commission (SEC) has unveiled 10 priorities aimed at addressing regulatory ambiguity in the cryptocurrency sector. Commissioner Hester Peirce outlined these priorities, acknowledging the SEC's past missteps and the need for legal clarity in the treatment of crypto assets. The lack of alignment with commercial realities has left many industry participants uncertain about compliance requirements.
The first priority on the list is determining the security status of various crypto assets. Peirce emphasized the importance of this determination in resolving other related questions. The task force is currently examining different types of crypto assets.
Next, the task force will define the boundaries of the SEC's jurisdiction by inviting no-action letter requests to clarify which crypto-related activities fall outside the agency's authority. The third priority is to establish a structured process that allows token offerings to obtain temporary relief while ensuring adequate disclosures, thus facilitating their trading on secondary markets.
Modifications to existing securities registration frameworks, such as Regulation A and crowdfunding rules, will be reviewed and recommended to better accommodate token issuances. The task force will also examine potential updates to the special-purpose broker-dealer framework, particularly in relation to the custody of crypto assets classified as securities and non-securities. Peirce acknowledged the need for changes to allow broker-dealers to participate more effectively in the crypto market.
Further down the list, the task force will develop custody solutions for investment advisers. Regulations regarding crypto lending and staking will also be addressed, with a focus on providing clarity on whether these programs are covered by securities laws and how they can be structured in compliance with the law.
The task force will also work on clarifying the regulatory framework for crypto exchange-traded products (ETPs). Approval processes and modifications, such as staking, will be explored, but custody issues must be resolved first. Additionally, the group will assess improvements to clearing agency and transfer agent regulations and consider the creation of a cross-border regulatory sandbox to promote international cooperation.
Peirce encouraged public engagement, inviting industry participants to contribute through written submissions and meetings. The SEC will provide updates on the task force's progress via its official webpage.