On January 21, 2025, the U.S. Securities and Exchange Commission (SEC) announced the formation of the Crypto 2.0 Task Force, led by Commissioner Hester Peirce, to develop a “comprehensive and clear regulatory framework” for cryptocurrencies.
This initiative marks a departure from the enforcement-driven approach under former SEC Chair Gary Gensler, who frequently targeted crypto firms for securities violations.
The task force aims to provide regulatory clarity, enhance disclosure frameworks, and establish consistent enforcement strategies, addressing long-standing industry demands for a predictable legal environment.
The Crypto 2.0 Task Force will collaborate with the CFTC, state regulators, and international counterparts to create registration pathways for crypto assets, including stablecoins and tokenized assets like music royalties etc.
The task force also seeks to move away from “retroactive” enforcement, criticized for stifling innovation. Acting SEC Chair Mark Uyeda emphasized that the initiative will foster market integrity and investor protection while supporting blockchain innovation.
The task force’s creation coincides with President Donald Trump’s pro-crypto agenda, including his January 23, 2025, executive order to prioritize digital assets.
The SEC’s shift is further underscored by the nomination of Paul Atkins, a crypto-friendly former commissioner, as the new SEC chair. Atkins’ appointment, alongside Brian Quintenz’s nomination to lead the CFTC, signals a coordinated effort to redefine regulatory roles.
The task force will review policies like Staff Accounting Bulletin 121 (SAB 121), which required crypto custodians to report assets as liabilities, a rule repealed by the SEC in 2025 after Congressional disapproval.
Industry leaders, such as Jag Kooner of Bitfinex, predict that the task force’s work will unlock sidelined capital, driving investment in tokenized assets and DeFi projects.
However, critics, including Corey Frayer of the Consumer Federation of America, warn that relaxed regulations could expose investors to risks, especially given Trump’s ties to World Liberty Financial.
The task force’s collaboration with the Presidential Working Group on Digital Asset Markets ensures alignment with broader federal goals, such as promoting dollar-backed stablecoins and evaluating a national crypto reserve.
Check our Market Insights for updates on regulatory developments and their impact on the crypto market.
