- The SEC announced the creation of a new crypto task force on Tuesday.
- This will help develop clearer rules for the crypto space, the agency said in a statement.
- Gary Gensler, the former SEC chairman who pursued tighter crypto regulation, left on Monday.
The Securities and Exchange Commission is rolling out a new cryptocurrency task force, the first major move in the cryptocurrency space during Donald Trump’s second term in the White House.
The SEC announced the creation of the task force in a statement on Tuesday. The task force will be led by Hester Peirce, the SEC commissioner appointed by Trump during his first term.
Among other things, the task force will help “draw clear regulatory lines” for the market, the statement said, highlighting previous confusion over which crypto companies were required to register with the SEC.
“Clarity around who should register and practical solutions for those seeking to register remain elusive. The result has been confusion over what is legal, creating an environment hostile to innovation and conducive to to fraud. The SEC can do better,” the SEC said. the agency wrote.
The agency said the task force will seek input from investors and industry experts when developing regulatory policy.
“We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, promotes market integrity and supports innovation,” Peirce said in the release.
Digital assets soared on the news. Bitcoin rose about 4% Tuesday afternoon to trade around $106,400, sending the leading crypto up nearly 14% year to date.
Other cryptocurrencies, including Ethereum,
Trump – who was dubbed the “president of crypto” on the campaign trail – is widely expected to usher in a new era for digital assets during his second term. Traders say they are considering friendlier regulators and a national bitcoin reserve as potential catalysts that could help drive digital asset prices higher over the next four years.
Trump said at the Bitcoin 2024 conference in July that he would present a plan “to ensure that the United States will be the crypto capital of the planet and the global bitcoin superpower.”
Trump also plans to sign a new executive order making crypto policy a priority, sources told Bloomberg last week.
SEC Chairman Gary Gensler resigned Monday. In the press release announcing his departure, the SEC highlighted Gensler’s work to take crypto enforcement actions in an effort to protect investors from fraud, fictitious transactions and other misconduct.
His announcement of his resignation at the start of Trump’s term caused cryptocurrency prices to skyrocket shortly after the election. XRP, in particular, rallied as the coin had been the target of an SEC lawsuit over alleged securities law violations.
Trump chose Paul Atkins to lead the SEC. Atkins was a commissioner of the SEC under President George W. Bush and has been a staunch defender of the crypto industry.
“Paul is a proven leader on common-sense regulations,” Trump said in a statement. Truth on social media announcing the choice. He added that Atkins “recognizes that digital assets and other innovations are crucial to making America greater than ever.”