Hester Peirce of the US Securities and Exchange Commission will lead a task force on cryptocurrencies to “steer the SEC on a sensible regulatory path.”
Newly appointed acting chairman Mark Uyeda announced the creation of the task force following criticism from many in the crypto industry that the agency had previously taken a “regulatory approach through enforcement.”
To date, the SEC has largely relied on enforcement actions to regulate cryptocurrencies retroactively and reactively, often adopting new and untested legal interpretations as it goes along, the SEC said in a statement.
There was a lack of clarity about who should register and practical solutions for those seeking to register.
The SEC is planning to make changes to its operations following the departure of former SEC Chairman Gary Gensler, who called on crypto firms to register with the agency because he said most cryptocurrencies are securities.
Some in the crypto industry have resisted, arguing that registering with the agency is impossible because the rules were set for more traditional entities that are distinct from the digital asset industry.
Ueda called the SEC’s approach to cryptocurrencies a disaster and said the crypto industry needs guidance. Peirce also criticized the agency’s approach and proposed a three-year «safe harbor» period during which innovators would be allowed to launch blockchain-based digital projects without registering or complying with certain federal securities laws.