SEC’s crypto task force meets as Trump aims to reshape cryptocurrency regulations, debating new frameworks for digital assets.

In Short

The SEC held its first public meeting on crypto regulation, led by Republican Commissioner Hester Peirce, as the Trump administration seeks to overhaul existing laws. The discussion highlighted the ongoing debate over classifying digital tokens and the potential impact of regulatory changes on market protections.

The U.S. Securities and Exchange Commission (SEC) held its first public meeting of the crypto task force on March 21.

The session focused on the application of securities laws to digital assets as the Trump administration plans to revamp existing regulations.

Participants included former SEC officials and representatives from the crypto industry, with Republican SEC Commissioner Hester Peirce leading the task force.

Peirce described this initiative as a new beginning for the SEC’s approach to cryptocurrency regulation.

There has been ongoing conflict between the crypto industry and regulators regarding whether digital tokens are classified as securities or commodities.

Disclosure requirements

If deemed securities, companies would need to register with the SEC and fulfill specific disclosure requirements.

Trump, who advocates for cryptocurrency, aims to reverse the regulatory actions taken by former President Biden’s SEC, which filed lawsuits against multiple crypto firms for regulatory breaches.

The new SEC leadership has agreed to pause or withdraw many of these cases.

During the meeting, participants discussed whether a separate regulatory framework for crypto tokens is necessary.

Donald Trump becomes the first sitting U.S. President to address a Crypto Conference and calls for American leadership in digital assets and stablecoin regulation.

In a historic first, President Donald Trump addressed the Blockworks Digital Asset Summit, vowing that the United States would “dominate crypto and the next generation of financial technologies.”

Speaking in a recorded message, Trump highlighted recent meetings with crypto industry leaders at the White House and touted his executive order to establish a strategic bitcoin reserve.

Trump urged Congress to pass legislation providing “simple, common-sense rules” for stablecoins and market structure, emphasizing that dollar-backed digital assets could help strengthen the dominance of the U.S. dollar.

“With the right legal framework, institutions large and small will be liberated to invest, innovate, and take part in one of the most exciting technological revolutions in modern history,” he said.

The president also positioned crypto as a tool for financial growth, privacy, and security, stating that pioneers in the industry could improve banking systems while protecting consumer wealth.

However, he took aim at regulators under the Biden-Harris administration, accusing them of using government power to suppress the industry through excessive oversight.

With the SEC recently dropping cases against key crypto firms, Trump’s comments signal a potential policy shift that could reshape the digital asset landscape in the U.S.

As lawmakers debate stablecoin regulations, industry leaders are watching closely to see if Trump’s vision for crypto-friendly policies will materialize.

Les Borsai, the Co-Founder of Wave Digital Assets joins Veronica Dudo to discuss.

Crypto industry receives White House support amid regulatory shifts, but faces challenges with Bitcoin prices and potential speculative risks.

In Short

The crypto industry is evolving with new regulatory changes and seeks legitimacy amid challenges.

Despite potential benefits from blockchain technology, concerns about legitimacy and regulation persist, particularly in light of Bitcoin’s speculative nature.

The crypto industry continues to develop, facing challenges and opportunities amid shifting regulatory landscapes.

Bitcoin remains over 20% below its January peak, as the White House presents new support for the sector.

For years, the industry has blamed strict regulations for stunting its growth. However, recent changes in leadership and some relaxed enforcement by the SEC signal a potential shift.

Government oversight

Following the transition in the White House, major players in the crypto sector are beginning to seek legitimacy through government oversight, hoping for less stringent regulation.

In a recent interview, Eswar Prasad, a Cornell professor, highlighted the dual nature of the crypto industry’s current state. While blockchain technology offers significant potential, questions remain about its real-world applicability.

Prasad pointed out that many firms have yet to realise substantial benefits from adopting blockchain for operations. Nonetheless, the stablecoin sector is gaining traction, exploiting existing frictions in financial systems.

There are concerns about the legitimacy of the industry, with some of its more dubious elements, such as meme coins, receiving government endorsement. The administration’s reluctance to use taxpayer money for Bitcoin purchases also drew criticism, as it raises questions about the strategic value of a potential cryptocurrency reserve.

Prasad expresses skepticism about the practical benefits of a strategic reserve, given Bitcoin’s speculative nature.