As Trump contemplates a regulatory overhaul, the US SEC hosts a roundtable.

The US Securities and Exchange Commission’s crypto task force conducted its first public meeting with experts on Friday, concentrating on how securities rules may apply to digital assets as the Trump administration seeks to revamp cryptocurrency regulations.

The discussion featured John Reed Stark, former chief of the SEC’s Office of Internet Enforcement; Miles Jennings, general counsel at Andreessen Horowitz’s cryptocurrency subsidiary, a16z; and former SEC Commissioner Troy Paredes. The task group, led by Republican SEC Commissioner Hester Peirce, is tasked with drafting regulations and advice for cryptocurrency.

“Spring is a time for fresh starts, and we are starting over with the commission’s approach to crypto regulation,” Peirce said.

Since many contend that cryptocurrency tokens are more like commodities, the industry has long been at odds with regulators over how federal securities laws apply to digital assets. If tokens were categorized as securities, companies would have to register with the SEC and give investors specific disclosures.

Trump, who ran on a platform of being a “crypto president,” has promised to undo an industry crackdown that was carried out by former President Joe Biden’s SEC, which filed lawsuits against several cryptocurrency companies, including Coinbase and Kraken, on the grounds that they had broken its regulations. Many of those cases have been paused or withdrawn by the SEC’s new leadership.

On Friday, the task force discussed whether a new, distinct regulatory framework for cryptocurrency tokens is necessary, distinct from the way the SEC regulates securities like stocks.

Jennings called on the SEC to adopt a “technology-neutral” stance, “examining what distinguishes ownership of equity in Apple (AAPL.O) from a system such as Ethereum.”

Concerns were raised by some, such as Democratic SEC Commissioner Caroline Crenshaw, that the regulator would leniently regulate cryptocurrencies by permitting them to function under a separate regime.

“There are risks associated with changing the law to support the success of a selected product category,” Crenshaw said. “Risk of weakening regulatory protections for that category and of having a negative cascading effect on other market segments that are subject to the same regulations.”

Trump has attempted to significantly change regulations pertaining to cryptocurrencies, and this is the first roundtable of the task force. Trump hosted a summit for business leaders at the White House earlier this month and signed an executive order to create a strategic cryptocurrency reserve.

By :-  Next Tech Plus

Rate this post

Stay in the Loop

Get the daily email from CryptoNews that makes reading the news actually enjoyable. Join our mailing list to stay in the loop to stay informed, for free.

Latest stories

- Advertisement - spot_img

You might also like...