January 24, 2025
By Our Correspondent
This initiative represents the first significant action taken by the new administration under President Donald Trump to reform crypto policy.
President Trump, who has expressed his intention to be a “crypto president,” has committed to reversing the stringent measures imposed on the industry by the previous administration, which included legal actions against several crypto firms such as Coinbase and Kraken for alleged violations of SEC regulations.
These companies have refuted the claims, contending that the SEC’s regulations are ill-suited for cryptocurrencies and that there is ambiguity regarding when a crypto token should be classified as a security, thus falling under the SEC’s jurisdiction.
The cryptocurrency sector has long advocated for the SEC to establish clear guidelines governing digital assets. The recent initiative, led by Republican Commissioner Mark Uyeda, who was appointed acting SEC chair by Trump, along with fellow Republican Commissioner Hester Peirce, signifies a notable policy advancement for the crypto industry under the current administration.
Uyeda’s office stated that the Task Force will aim to delineate clear regulatory boundaries, offer practical pathways for registration, develop reasonable disclosure requirements, and allocate enforcement resources effectively.
Uyeda and Peirce are set to initiate the overhaul of Trump’s crypto policy, which includes the commencement of the rule-making process. Additionally, it is anticipated that Trump will soon issue executive orders aimed at reducing regulatory oversight of the cryptocurrency sector and fostering the adoption of digital assets, as reported by Reuters and other news outlets.
Trump has also annulled an order from the Biden administration aimed at mitigating the risks associated with artificial intelligence.
On Monday, Bitcoin reached a new all-time high of $109,071, fueled by investor enthusiasm regarding the newly crypto-friendly administration.
The task force will assist lawmakers in formulating cryptocurrency-related legislation while collaborating with other federal entities, including the Commodity Futures Trading Commission, as well as state and international agencies, according to the SEC. A senior executive at Coinbase also expressed support for this development.