SEC assigns part of crypto enforcement team, establishes task force to create regulatory clarity on cryptocurrencies

SEC Reorganizes Again

The U.S. Securities and Exchange Commission (SEC) has decided to downsize its cryptocurrency enforcement unit. Reportedly, some members of the unit, including one of its top executives, have been transferred to other departments.

In recent years, the unit has spearheaded numerous actions against crypto companies, including lawsuits with Binance and Ripple, setbacks with Coinbase and Crypto.com, and stringent regulations like the now-repealed SAB 121.

However, the current landscape under the new administration suggests a new approach. For this reason, the SEC has established a task force that will gather industry input to improve regulatory clarity.

The crypto world has long been waiting for concrete answers. Without clear rules, many companies have avoided the United States for fear of lawsuits, a narrative that now appears to have changed.

New Task Force Aims to Clear Crypto Regulatory Framework

Hester Peirce, the Republican commissioner of the SEC, will lead the new working group. One of its primary goals is to determine which cryptocurrencies are securities and which are not, a move that could change the rules for companies, clarifying the registration and transparency process.

Additionally, the team is exploring ways to provide a clearer regulatory framework, potentially offering retroactive exemptions for certain token offerings that meet certain transparency requirements.

“We will work with the federal government, state securities regulators, and our international counterparts,” Peirce said. “We invite workers, enthusiasts, and skeptics to engage with us to understand what the final rules should be and what interim steps could help foster innovation in the meantime.”