U.S. Securities and Exchange Commission (SEC) Commissioner Mark Uyeda speaks at the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, United States, Tuesday, September 17, 2024.
Al Drago | Bloomberg | Getty Images
The Trump administration on Tuesday took the first step toward lowering regulatory hurdles for cryptocurrencies.
In a long-awaited move for the digital asset industry, The U.S. Securities and Exchange Commission announced Acting Chairman Mark Uyeda established a “Cryptocurrency Working Group” aimed at “developing a comprehensive and clear regulatory framework for crypto-assets.”
During his presidential campaign, Trump promised to create a cryptocurrency-friendly government for the $3.7 trillion industry.
Although Uyeda announced the initiative, it will be led by SEC Commissioner Hester Peirce. Oueda will chair the meeting until Paul Atkins completes the confirmation process and provides executive resources.
According to the SEC’s announcement, the panel will be tasked with developing a clear set of rules while addressing issues surrounding coin registration.
“We look forward to working with the public to create a regulatory environment that protects investors, promotes capital formation, promotes market integrity and supports innovation,” Pierce said.
After the news was announced, Bitcoin rose about 2.4% to over $106,000.
Just before the inauguration, Trump released his own meme coin called $TRUMP, highlighting his support for digital currencies, while first lady Melania Trump tweeted The currency of $Melania. Both tokens experienced rapid price spikes and then sharp declines.
The White House’s view on cryptocurrencies is very different than it was when Joe Biden was president. Then-SEC Chairman Gary Gensler was viewed as an enemy of the industry.
During Gensler’s time on the committee, he resisted efforts to establish cryptocurrency exchange-traded funds, supported strict accounting policies and filed enforcement lawsuits against industry leaders.
“Clearness about who must register, and practical solutions for those seeking to register, has been elusive. The result is confusion about legality, which creates an environment that is detrimental to innovation and conducive to fraud,” the commission’s announcement say. “The SEC can do better.”
The task force intends to hold public hearings and solicit input from industry. It will work with federal departments and agencies, including the Commodity Futures Trading Commission.
“This effort will take time, patience and a lot of hard work,” Pierce said. “The task force will only be successful if it receives input from a broad range of investors, industry participants, academia and other stakeholders.”
