The US Securities and Exchange Commission is carving out a new path for the cryptocurrency sector, including evaluating the security status of crypto assets and potentially providing “retroactive relief” for certain token offerings.
According to a Feb. 4 statement issued by SEC Commissioner Hester Peirce, the White House’s newly announced Crypto Task Force will use its tools to provide better regulatory clarity for digital assets — something the commission was criticized for failing to do under ex-Chair Gary Gensler.
The task force is “recommending Commission action to provide temporary prospective and retroactive relief for coin or token offerings” under certain conditions, including providing and updating specified information and agreeing “not to contest the Commission’s jurisdiction in the event of a case alleging fraud in connection with the purchase and sale of the asset,” Peirce said.
Commissioner Peirce’s statement on crypto regulation. Source: SEC
Peirce also said the task force is reconsidering whether certain assets are securities.
“The status of crypto assets under the securities laws is fundamental to resolving many other questions. The Task Force is working hard to examine different types of crypto assets,” she said.
Related: Trump’s executive order a ’game-changer’ for institutional crypto adoption
Push for regulatory clarity grows under Trump
The election of President Donald Trump in the US in November marked a major turning point for the cryptocurrency sector. Trump nominated the pro-crypto Paul Atkins to be SEC chair, created a special advisory role for cryptocurrency and AI, and signed an executive order establishing a digital asset working group.
According to Coinbase CEO Brian Armstrong, the Trump administration will likely place renewed emphasis on passing sensible stablecoin regulations, which is a stepping stone for ensuring that the US dollar remains the preferred reserve currency.
Lawmakers have also spoken out, with Republican Representative Tom Emmer saying that “passing comprehensive market structure and stablecoin legislation” will be a top priority in Congress.
Source: Tom Emmer
Traditional financial institutions are eager to enter the cryptocurrency market once regulators provide clearer guidelines for participation. According to Bank of America CEO Brian Moynihan, financial institutions are eyeing “crypto payments,” in particular.
If crypto transactions become “a real thing,” then the “banking system will come in hard on the transaction side of it,” said Moynihan.
Related: Crypto Biz: Trump’s arrival marks a pivotal shift for digital assets