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SEC launches crypto task force to create regulatory clarity

Relations between top Wall Street cops and the U.S. cryptocurrency industry are on the mend after more than four years of friction.

On Tuesday, the Securities and Exchange Commission announced it is spearheading efforts to establish a regulatory framework for digital assets with the creation of a new Cryptocurrency Task Force.

The effort, led by Republican Commissioner Hester Peirce, will be the first official action by Acting Commissioner Mark Ueda, who was appointed to chair the commission by President Trump on Monday. Ueda, a Republican commissioner, will serve in the role until Paul Atkins, President Trump's permanent nominee for director, is confirmed by the Senate.

FOX Business first reported in November that Hester Peirce, affectionately known in the industry as “Crypto Mom,” had expressed interest in leading such a group and that a task force might be formed. Ta.

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SEC Commissioner Mark Ueda speaks at the 2024 Financial Markets Quality Conference at Georgetown University on September 17, 2024 in Washington, DC. (Al Drago/Bloomberg via Getty Images/Getty Images)

As previously reported, the task force will work closely with industry stakeholders to build an open dialogue that will enable a more friendly regulatory environment. In Tuesday's announcement, the SEC asked for input from commission staff, investors, legal experts, and academics to gain a deeper understanding of how the $3.5 trillion industry should be wisely regulated. It was specified that it would bring out the It will also work with other federal agencies, including the Commodity Futures Trading Commission.

The SEC, under the leadership of Biden's Chairman Gary Gensler, who resigned from the agency on Monday, has filed a slew of lawsuits over the past four years as the commission seeks to use enforcement tools to bring the sector into compliance. I woke you up.

Industry players have long complained that the decentralized nature of cryptocurrencies and the blockchain technology they operate do not qualify them for regulation in the same way as traditional securities, such as stocks and bonds. They frequently call on regulators and Congress to develop new regulatory frameworks specifically for digital assets.

However, Gensler disagrees with this view by refusing to register with the commission, believing that traditional securities laws are sufficient to regulate virtual currencies and that most digital assets, with the exception of Bitcoin, are securities. He sued a company that advocated this.

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SEC Chairman Gary Gensler attends a meeting of the U.S. Treasury Department's Financial Stability Oversight Council in Washington, DC on July 28, 2023. The Council met to present an update on the Council's Climate-Related Financial Risks Committee and to discuss the transition away from LIBOR. (Photo by Kevin Dietsch/Getty Images)

SEC Chairman Gary Gensler attends a meeting of the U.S. Treasury Department's Financial Stability Oversight Council in Washington, DC on July 28, 2023. The Board met to provide an update on the Board's Climate-Related Financial Risks Committee. (Kevin Dietsch/Getty Images/Getty Images)

Meanwhile, President Trump has promised to ease regulations to benefit developing industries such as artificial intelligence and cryptocurrencies. Since his election on November 5, he has appointed several industry advocates to key leadership positions at the Treasury Department, the Securities and Exchange Commission, and the CFTC, and has appointed venture capitalist David Sachs as the first-ever cryptocurrency and appointed him the “emperor” of AI.

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Peirce and the Cryptocurrency Task Force have already welcomed regulatory input from the public via email, and plan to hold roundtables with industry stakeholders in the future.

“This project will take time, patience and a lot of hard work…” Peirce said. press release Announcement of initiatives. “We look forward to working with the public to foster a regulatory environment that protects investors, fosters capital formation, promotes market integrity, and supports innovation.”

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