SEC Commissioner Peirce to Lead Crypto Task Force
Commentary by Steven Lofchie and Gage Raju-Salicki
SEC Commissioner Hester M. Peirce will lead a Task Force dedicated "to developing a comprehensive and clear regulatory framework for crypto assets."
According to the SEC announcement, SEC Acting Chair Mark T. Uyeda directed the Task Force to "help the Commission draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously." The new leadership asserted that "[t]o date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way" and that "[c]larity regarding who must register, and practical solutions for those seeking to register, have been elusive."
Commissioner Peirce previously proposed a fulsome plan for a three-year safe harbor from the application of securities laws, aside from anti-fraud requirements, on the sale and trading of digital tokens. (See related coverage.)
Commentary
While SEC Chair Gensler did little to prepare for the inevitable legalization of cryptocurrencies, Commissioner Peirce wrote well-reasoned dissents and offered important ideas (like the Safe Harbor) which should help lay the foundation for her new role. Her approach to regulation is everything that has been missing: respect for the rule of law, open-mindedness, concern for the details, modesty and a genuine sense of humor. There is not a better person to lead this regulatory effort.
See also below, an out-of-the-box think piece as to a "Quick and Dirty Fix for Crypto Regulation."
Commentary
And we're off to the races!
The SEC's new Crypto Task Force will be led by Commissioner Peirce, who has long been known for her dissents to the Gensler-led SEC's releases and rules. In 2021, Commissioner Peirce published (via GitHub, too!) her Token Safe Harbor Proposal 2.0 which sought to create some form of regulatory guidance—albeit theoretical—for cryptocurrencies. Now, she is in a position to shape the future of crypto-regulation.
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