June 11, 2025
By Anjali Kochhar
As of early June, the Biden-era approach of using enforcement actions to regulate crypto is being replaced by plans for open rulemaking. SEC leadership is now pushing for clearer, fairer oversight to support innovation while safeguarding investors.
SEC Commissioner Hester Peirce called for major reforms at the Third Annual Emerging Trends in Asset Management conference. She argued for streamlined regulation that reduces red tape and promotes growth in digital asset markets. Peirce emphasised that delayed approvals for spot Bitcoin and Ether ETPs hurt the sector and placed investors at risk.
Peirce said custody remains a major pain point. Uncertainty around whether state-chartered limited purpose trusts qualify as custodians under federal law has hindered fund formation. She welcomed recent steps toward clarity, such as the rescission of Staff Accounting Bulletin 121 and updated guidance from banking regulators.
The Commissioner pledged to expand custody options and introduce principles-based standards tailored to crypto rather than fitting it into legacy frameworks. She proposed exemptions for certain token types, such as airdrops and non-security tokens, and advocated safe-harbor provisions for startups.
Federal rulemaking is also underway under SEC Chair Paul Atkins, who called for ending rule-by-enforcement and shifting to transparent notice-and-comment procedures. Atkins explained in his Senate Appropriations testimony that the commission will draft clear rules for issuance, custody and trading of digital assets.
The SEC has established a dedicated Crypto Task Force led by Hester Peirce to engage stakeholders through roundtable discussions covering key areas such as asset classification, token offerings, custody and DeFi protocols.
Industry players have welcomed the move. The Biden administration’s use of enforcement actions had forced many firms offshore. The new rulemaking promises a more stable, predictable path. That shift has fueled a rally in crypto markets, including a notable jump in Bitcoin prices following statements from regulators.
Critics caution that oversight must balance innovation and protection. Senator Elizabeth Warren has warned that a looser approach could leave retail investors vulnerable. Legal analysts also say meaningful rules may take months or years.
The transformation from ad-hoc enforcement to collaborative rulemaking suggests a strategic pivot at the SEC. It signals a willingness to include crypto firms in the regulatory conversation and build frameworks that encourage innovation rather than stifle it.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over four years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
