The Securities and Exchange Commission (SEC) – under new leadership as Donald Trump begins his second term as US president – has launched a task force to create a regulatory framework for crypto assets as it seeks to bring legal clarity to what it describes as “confusion.” An “anti-innovation” environment.
The new president was sworn in this week Mark Ueda to be acting Chairman of the Securities and Exchange Commission. In an advertisement entitled “SEC Crypto 2.0: Acting President Ueda Announces Formation of New Cryptocurrency Task Force” (January 21), the agency announced that Ueda “launched a crypto working group dedicated to developing a comprehensive and clear regulatory framework for crypto assets.”
Ueda, a Republican member of the SEC, fills the role previously held by Gary Gensler, who stepped down with Trump’s return to the White House (as announced on November 21, 2024). Cryptocurrency-related enforcement actions have dominated headlines during Gensler’s tenure, which began in 2021. Trump tapped former SEC Commissioner Paul Atkins to run the agency on a permanent basis. It awaits Senate approval.
“To date, the SEC has relied primarily on enforcement actions to regulate cryptocurrencies retrospectively and reactively, often adopting new and untested legal interpretations along the way,” the SEC said in announcing the task force. “Clarity about who must register, and practical solutions for those seeking registration, has been elusive. The result has been confusion over what is legal, creating an environment hostile to creativity and conducive to fraud. The SEC can do what is better.
The developments at the SEC come during what has been a remarkable week in US politics, with both Donald Trump and his wife Melania launching their own cryptocurrency tokens; The website of the newly created Department of Government Efficiency (‘DOGE’) displayed the logo of Dogecoin – a cryptocurrency promoted by prominent Trump supporter Elon Musk – on its homepage.
Related article Trump combines artificial intelligence and cryptocurrencies in the role of White House “czar.” -News story (December 11, 2024) Regarding the appointment of David Sachs as the White House AI and Cryptocurrency “Czar.”
“Reasonable” regulation sought.
The task force will help the SEC “draw clear regulatory lines, provide realistic paths to registration, formulate reasonable disclosure frameworks and judiciously deploy enforcement resources,” the announcement said. It will work within the legal framework provided by Congress and will coordinate the provision of technical assistance to Congress as it makes changes to that framework.
Commissioner Hester Peirce will lead the task force, which will draw on talented staff across the agency [and] Collaborate with Commission staff and the public to put the SEC on a reasonable regulatory path that respects the limits of the law. The task force will also coordinate with federal departments and agencies, including the Commodity Futures Trading Commission (CFTC), and their state and international counterparts.
“This project will take time, patience and a lot of hard work,” Pierce said. “It will only succeed if the task force gets input from a broad range of investors, industry participants, academics and other interested parties. We look forward to working alongside the public to foster a regulatory environment that protects investors, facilitates capital formation, promotes market integrity and supports innovation.”
Richard Gabbert, a senior advisor to the acting president, and Taylor Asher, a senior policy advisor to the acting president, will serve as chief of staff of the task force and senior policy advisor, respectively.
Trump used his social media platform TruthSocial to announce the nomination of Atkins, who currently serves as CEO of Patomak Global Partners, on December 4. Trump described Atkins (in his online post) as a “proven leader of commonsense regulation,” saying that he (Atkins) “believes in the promise of strong, innovative capital markets that respond to investor needs, and provide capital to make our economy the best in the world.” Trump added that Atkins — who was Commissioner of the Securities and Exchange Commission from 2002 to 2008 – “also recognizes that digital assets and other innovations are essential to making America greater than ever.”
Trump and Melania dollars
Trump pledged during his pre-election campaign to make the United States the “cryptocurrency capital” and “bitcoin superpower” of the world. Bitcoin is the most popular cryptocurrency in the world. Its price surpassed $100,000 (about £78,000) during the first week of December 2024 amid hopes for lighter cryptocurrency regulation in the US.
Trump even launched his own cryptocurrency, Trump, three days before his return to the White House. His wife, Melania, followed suit by launching the $Melania campaign on the eve of her husband’s inauguration. Both of their cryptocurrency versions have been referred to as “meme coins” – meaning a cryptocurrency inspired by internet memes or pop culture phenomena.
However, Trump did not mention cryptocurrencies during his inauguration speech and they were not included in a series of executive orders issued on his first day back in power. However, it is widely expected that he will issue an executive order that will be received positively by the cryptocurrency sector.
one The executive order signed on day one was to create DOGE to “modernize federal technology and software to maximize government efficiency and productivity.”. The DOGE website initially showed the dogecoin logo, according to the DOGE website Media reportsbut (at the time of writing) this is no longer the case. Musk is set to become the sole leader of DOGE after biotech entrepreneur Vivek Ramaswamy stepped down, reportedly choosing to run for governor of Ohio instead.
DOGE has a deadline of July 4, 2026 to complete its work.
Changes in CFTC leadership.
Meanwhile at the CFTC, Caroline de Pham was appointed this week as acting president (January 20), succeeding Roustin Behnam, who will remain commissioner until his departure on February 7.
Yesterday (January 22), Pham announced leadership changes for the Commodity Futures Trading Commission (CFTC), including the appointment of… Harry Jung as Acting Chief of Staff. Jung will also lead the CFTC’s engagement in cryptocurrencies, decentralized finance (DeFi) and other digital assets.
Last month (December 6), Trump announced the appointment of David Sachs as the White House’s AI director and cryptocurrency “czar” — a role in which the former PayPal executive will “direct policy…in two areas critical to America’s future.” . Competitiveness.
He also announced (on December 22) that Bo Haynes will be Executive Director of the President’s Council of Digital Asset Advisors (“Cryptocurrency Council”). – A new advisory group “composed of prominent figures in the cryptocurrency industry” which will be chaired by Sachs.
Trump said on his social media platform Truth Social that Hines — a former college football player who was narrowly defeated as a Republican candidate in North Carolina’s 13th Congressional District in 2022 (when Trump endorsed him) — will work with Sachs to foster innovation and growth in the field of digital assets, ensuring industry leaders have the resources they need to succeed.
The European Union’s (EU) landmark regulation of the cryptoasset sector came into full force on 30 December 2024. The 27-member union’s Markets in Cryptoassets Regulation (MiCA) (also abbreviated as MiCAR) was approved by European parliamentarians in April 2023. This makes the European Union the first major jurisdiction in the world to establish a comprehensive regulatory framework for crypto assets.
