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Mark Ueda, commissioner of the U.S. Securities and Exchange Commission (SEC), speaks during the 2024 Financial Markets Quality Conference at Georgetown University in Washington, D.C., U.S., Tuesday, Sept. 17, 2024.
Al Drago | Bloomberg | Getty Images
On Tuesday, the Trump administration took the first steps toward an expected reduction in regulatory barriers to cryptocurrency.
In a long-awaited move from the digital asset industry, the The Securities and Exchange Commission announced that acting chairman Mark Ueda created a “crypto task force” aimed at “developing a comprehensive and clear regulatory framework for crypto-assets.”
During the presidential campaign, Trump promised a crypto-friendly administration for the $3.7 trillion industry.
Although Ueda announced the initiative, it will be led by SEC Commissioner Hester Pierce. Ueda holds the chair until Paul Atkins goes through the confirmation process and provides the resources to execute.
According to the SEC announcement, the task of the group will be to develop a clear set of rules, as well as to resolve issues related to the registration of coins.
“We look forward to working hand-in-hand with the public to create a regulatory environment that protects investors, promotes capital formation, promotes market integrity and supports innovation,” said Pierce.
After the announcement, Bitcoin rose 2.4% to over $106,000.
Just before his inauguration, Trump highlighted his support for digital currencies by launching his own meme coin called $TRUMP, with First Lady Melania Trump calling it $Melania. Both tokens saw a quick spike in price before falling sharply.
The White House’s view of cryptography is dramatically different from when Joe Biden was president. Then-SEC Chairman Gary Gensler was considered an enemy of the industry.
During Gensler’s time on the commission, he resisted efforts to create crypto exchange-traded funds, supported strict accounting policies, and filed lawsuits against industry leaders.
“Clarity on who should register and practical solutions for those seeking to register have been elusive. The result has been confusion about what is legal, creating an environment hostile to innovation and conducive to fraud,” the commission said in a statement. “The SEC can do better.”
The task force intends to hold public hearings and solicit industry input. It will work with federal departments and agencies, including the Commodity Futures Trading Commission.
“This task will take time, patience and a lot of hard work. It will only be successful if the Task Force receives input from a broad range of investors, industry participants, academics and other stakeholders,” said Pearce.
