'SEC Can Do Better': Hester Peirce to Lead New Crypto Task Force - Decrypt

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One day after SEC Chair Gary Gensler departed alongside the inauguration of President Donald Trump, the U.S. Securities and Exchange Commission announced a crypto task force Tuesday in a pointed announcement that's critical of the regulator's past actions.

"Drawing from talented staff across the agency, the task force will collaborate with Commission staff and the public to set the SEC on a sensible regulatory path that respects the bounds of the law," the statement reads. "To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way. Clarity regarding who must register, 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 conducive to fraud," it continued. "The SEC can do better."

The SEC's Acting Chairman Mark Uyeda, appointed to the role on Monday, announced the news Tuesday. SEC Commissioner Hester Peirce, a noted crypto advocate who has earned the affectionate nickname "Crypto Mom," will lead the task force, aiming to strike a more collaborative tone with crypto firms.

Uyeda and Peirce clashed with Gensler during his tenure as SEC chair. Among conflicts within the public’s view, Uyeda and Peirce dissented against enforcement actions targeting the Stoner Cats NFT series and Flyfish Club, a restaurant implementing an NFT-based membership plan.

In both cases, the commissioners pushed back against the SEC’s stance that the NFTs were offered as unregistered securities, arguing that the agency was overzealous for pursuing investigations over the equivalent of “Star Wars collectibles” and limited-edition art.

With Tuesday’s announcement, that approach will likely end. As the SEC works to “craft sensible disclosure frameworks,” the agency said it will also employ enforcement resources judiciously.

Following the high-profile collapse of FTX in 2022, the SEC engaged in an enforcement blitz, launching lawsuits against some of the industry’s largest companies, including the crypto exchanges Binance and Coinbase. Meanwhile, the SEC pressed forward with its lawsuit against Ripple Labs over its prior sales of the cryptocurrency XRP.

“The rules have already been published,” Gensler asserted in 2023, saying that most crypto firms choose to be noncompliant with securities laws, even if the SEC “stands ready to help them to come into compliance.”

The new SEC task force will coordinate with other regulatory agencies, including the CFTC, a move that mirrors one of Trump’s expected reforms. It will also assist Congress as it makes changes to its regulatory framework, signaling that the agency is open to a now-stalled market structure bill passed in the House of Representatives last year.

"Nature is healing," Coinbase Chief Legal Officer Paul Grewal said on X (formerly known as Twitter).

Editor's note: This story was updated after publication with additional details.

Edited by Andrew Hayward

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