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Mark Uyeda, commissioner at the US Securities and Exchange Commission (SEC), speaks during the 2024 Financial Markets Quality Conference at Georgetown University in Washington, DC, US, on Tuesday, September 17, 2024.
To the Dragon | Bloomberg | Getty Images
The Trump administration took its first steps on Tuesday toward a planned lowering of regulatory barriers for cryptocurrency.
In a long-awaited move by the digital asset industry, the Securities and Exchange Commission announced that acting president Mark Uyeda launched a “crypto” 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 Uyeda announced the initiative, it will be led by SEC Commissioner Hester Peirce. Uyeda will hold the chair until Paul Atkins goes through the confirmation process and provides enforcement resources.
According to the SEC announcement, the task of the panel will be to develop a clear set of rules and also addressing issues related to the registration of coins.
“We look forward to working hand in hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity and supports innovation,” Peirce said.
Bitcoin rallied on the announcement, up about 2.4% to over $106,000.
Just before his inauguration, Trump underlined his support for digital currencies by releasing his own meme currency, called $TRUMP, while first lady Melania Trump, called $Melania. Both tokens saw a rapid rise in price before sharply turning lower.
The White House’s view on crypto is very different since Joe Biden served as president. The chairman of the SEC, Gary Gensler, was seen as an enemy of the industry.
During Gensler’s time at the commission, he resisted efforts to establish crypto exchange-traded funds, endorsed tough accounting policies and filed enforcement cases against industry leaders.
“Clarity as to who should be registered, and practical solutions for those seeking to register, have been elusive. The result has been confusion about what is legal, which creates an environment hostile to innovation and favorable to the fraud,” said the commission’s announcement. “The SEC can do better.”
The task force plans to hold public hearings and solicit input from industry. It will work with federal departments and agencies, including the Commodity Futures Trading Commission.
“This undertaking will take time, patience and a lot of hard work. It will only succeed if the Task Force has input from a wide range of investors, industry participants, academics and other interested parties,” said Peirce.
