SEC’s Crypto Task Force Sets Regulatory Priorities as Enforcement Focus Shifts

The head of the Securities and Exchange Commission’s new Crypto Task Force announced its 10 initial priorities on February 4. In her statement, titled “The Journey Begins,” SEC Commissioner and task force chair Hester Peirce likened the SEC’s prior “crypto road trip” to an era of paper maps and unclear detours as she signaled a shift toward establishing more pragmatic, legally sound rules for digital assets, while maintaining investor protections. Acknowledging that modernizing the SEC’s approach will take time, Peirce’s statement expressed optimism that collaboration with other regulators, market participants, and the public can yield an innovation-friendly framework.

Peirce noted one early milestone for the task force in rescinding Staff Accounting Bulletin 121, but she underscored that significant work remains. Peirce also emphasized that protecting investors and preserving market integrity remain core SEC objectives. While aiming to create a regulatory framework that allows market participants the freedom to innovate, Peirce stressed that the SEC “does not tolerate liars, cheaters, and scammers” and will give “careful consideration to antifraud protections.” Moreover, if the SEC identifies fraudulent activity beyond its jurisdiction, it may refer the matter to a sister regulator or, where no clear oversight exists, bring the gap to Congress’s attention.

Crypto Task Force’s 10 Priorities

Below are the 10 priorities the task force is currently working on or planning to address, according to Peirce’s statement. This list is not exhaustive, is not presented in any particular order, and is silent on an expected completion timeline:

1. Security Status: Examine various types of crypto assets to determine their status under existing federal securities laws.
2. Scoping Out: Identify areas outside the SEC’s purview—potentially through no-action letters—to provide clearer boundaries for market participants.
3. Coin and Token Offerings: Consider implementing a safe harbor or comparable mechanism to give token issuers practical routes to compliance with key disclosures and antifraud safeguards.
4. Registered Offerings: Explore adapting existing SEC registration pathways (e.g., Regulation A or Regulation Crowdfunding) to facilitate compliant token sales.
5. Special-Purpose Broker-Dealers (SPBDs): Update the current SPBD framework—viewed as ineffective in its present form—to permit the custody and trading of both crypto asset securities and non-securities.
6. Custody Solutions for Investment Advisers: Work with investment advisers to provide an appropriate regulatory framework within which advisers can safely, legally, and practically custody client assets themselves or with a third party.
7. Crypto Lending and Staking: Determine whether and how crypto lending and staking programs trigger securities laws and propose viable compliance models.
8. Crypto Exchange-Traded Products (ETPs): Collaborate with self-regulatory organizations to clarify listing standards, approval criteria, and possible expansions (e.g., staking, in-kind redemptions) for crypto ETPs.
9. Clearing Agencies and Transfer Agents: Work on the intersection of crypto and clearing agency and transfer agent rules, collaborating with market participants interested in tokenizing securities or otherwise using blockchain technology to modernize traditional financial markets.
10. Cross-Border Sandbox: Consider ways to facilitate limited, temporary international collaboration to pilot crypto solutions without immediately triggering conflicting regulatory regimes.

Peirce’s announcement concluded by inviting industry participants, academics, and the public to offer feedback by emailing the task force or requesting a virtual or in-person meeting. More information on submitting comments and requesting meetings—including privacy and copyright considerations—is available on the Crypto Task Force webpage.

Looking Ahead

The Crypto Task Force’s initial priorities and open call for engagement mark a significant shift in the SEC’s approach to regulating digital assets. Peirce’s emphasis on collaboration, practical rulemaking, and investor protection suggests that stakeholders should closely follow the task force’s ongoing efforts—and consider submitting feedback or requesting meetings to help shape the regulatory framework.

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