The SEC launches a crypto task force on Trump's 2nd day in office
AP Photo/Mark Humphrey, File
- The SEC announced the creation of a new crypto task force on Tuesday.
- It will help draw clearer rules for the crypto space, the agency said in a statement.
- Gary Gensler, the former SEC Chair who pursued more stringent regulation of crypto, departed on Monday.
The Securities and Exchange Commission is rolling out a new cryptocurrency task force, the first big move in the crypto space of 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 Trump appointed during his first term.
Among other things, the task force will help "draw clear regulatory lines" for the market, the statement said, pointing to prior confusion over which crypto firms were required to register with the SEC.
"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. The SEC can do better," the agency wrote.
The agency said that the task force will seek comment from investors and industry experts in crafting regulatory policy.
"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 in the statement.
Digital assets climbed on the news. Bitcoin rose about 4% Tuesday afternoon to trade around $106,400, pushing the top crypto up nearly 14% year-to-date.
Other cryptocurrencies, including ethereum, XRP, and Tether also moved higher, lifting the total market cap of all cryptocurrencies up 2.66%, according to CoinMarketCap data.
Trump — who was dubbed the "crypto president" on the campaign trail — is widely expected to usher in a new era for digital assets in his second term. Traders say they're eyeing friendlier regulators and a national bitcoin reserve as potential catalysts that could help push digital asset prices higher over the next four years.
Trump said at the Bitcoin 2024 conference in July that he'd lay out a plan "to ensure that the United States will be the crypto capital of the planet and the bitcoin superpower of the world."
Trump also plans to sign a new executive order making crypto policy a priority, sources told Bloomberg last week.
SEC chair Gary Gensler stepped down on Monday. In the press release announcing his departure, the SEC highlighted Gensler's work to bring crypto enforcement actions in a bid to protect investors from fraud, wash trading, and other misconduct.
His announcement that he would resign at the start of Trump's term sent crypto prices soaring shortly after the election. XRP, in particular, rallied as the coin had been the target of an SEC lawsuit over alleged violations of securities law.
Trump has picked Paul Atkins to run the SEC. Atkins was an SEC commissioner under President George W. Bush, and has been an outspoken advocate for the crypto industry.
"Paul is a proven leader for common sense regulations," Trump said in a Truth Social post announcing the pick. He added that Atkins "recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before."