SEC reconsiders crypto stance after task force meetings

The Securities and Exchange Commission (SEC) Crypto Task Force has been actively engaging with industry leaders to discuss crypto regulation.

These meetings, initiated on January 21, involve reviewing frameworks for digital asset taxonomy and regulatory structures.

The task force is led by Commissioner Hester Peirce.

The task force met with Strategy executive chair Michael Saylor, the Crypto Council for Innovation, and MITRE Corporation on February 21.

The discussions covered defining a crypto taxonomy and regulating staking for Exchange Traded Products (ETPs).

The proposed framework classifies digital commodities like Bitcoin (CRYPTO:BTC), digital securities tied to issuers, fiat-backed digital currencies, utility tokens, non-fungible tokens, and digital assets linked to physical commodities.

It calls for transparent custody practices, fair disclosure, and adherence to local laws, establishing rights and responsibilities for issuers, exchanges, and asset owners.

Commissioner Peirce has invited public input on crypto assets and blockchain technology.

This outreach includes online forms for submitting written feedback or requesting meetings with the Task Force.

The SEC may be shifting its regulatory approach under new leadership, potentially dropping enforcement actions against crypto firms.

The commission has already closed an investigation into Robinhood Crypto and may drop its case against Coinbase.

The SEC also moved to dismiss its appeal blocking a broker-dealer rule concerning some crypto firms.

These changes follow discussions between the SEC Crypto Task Force and representatives from the Blockchain Association, Jito Labs, Multicoin Capital, and others.

It remains uncertain whether the commission will pursue a different regulatory path under acting chair Mark Uyeda or await the confirmation of Paul Atkins as the official agency head.

The Senate Banking Committee has not yet scheduled a hearing date for Atkins' nomination.