SEC Commissioner Hester Peirce Unveils Crypto Task Force for Regulatory Clarity

• SEC’s Crypto Task Force aims to provide clear regulatory guidelines and define digital asset securities.  
• Rescinding Bulletin 121 signals SEC’s shift toward transparent, growth-focused crypto regulation.

The U.S. Securities and Exchange Commission (SEC) has officially launched a new Crypto Task Force to provide more straightforward regulatory guidelines for digital assets. Led by SEC Commissioner Hester Peirce, the task force intends to move away from the agency’s previous enforcement-heavy strategy and replace it with a more structured and transparent approach.

One of the main priorities of the Crypto Task Force is to define the security status of various digital assets, a long-debated issue in the industry. With digital currencies and tokens falling into unclear areas of regulation, the task force seeks to clarify which assets are considered securities and which fall outside the SEC’s jurisdiction.

The crypto Task Force webpage is live. Join us for the drive (toward crypto clarity): https://t.co/o2jzNUhJ5D and https://t.co/9AwTYkmOCw

— Hester Peirce (@HesterPeirce) February 4, 2025

Commissioner Peirce emphasized that the task force will not endorse specific crypto projects or assets. Instead, it will focus on creating an environment where valid innovation will advance while maintaining accountability.

In its initial phase, the task force will address regulatory gaps in the crypto market. It will examine special-purpose broker-dealer regulations, crypto exchange-traded products, and clearing agencies. 

Additionally, as per updates from CNF, the SEC will explore ways to improve the regulation of crypto-lending and staking programs, which have faced increased scrutiny in recent years. It will also examine areas where the SEC may not have jurisdiction, providing a clearer picture of the agency’s role in regulating digital assets.

The Crypto Task Force will collaborate with international regulators to develop cross-border rules compatible with the global crypto markets to strengthen regulation. This alliance will aid in establishing best practices and speed up the development of a unified regulatory approach to digital assets.

The Rescission of Staff Accounting Bulletin 121

As a first step toward implementing regulatory clarity, the SEC has withdrawn Staff Accounting Bulletin 121, a move accepted by many in the crypto community. This bulletin created confusion and regulatory hurdles for digital asset firms, particularly in accounting for crypto holdings.

Peirce stated that while the rescinding of Bulletin 121 is an important move, much work remains ahead. The task force is set on further developing and expanding its efforts to cover a wide range of crypto-related activities, from token offerings to custody solutions. It will continue to engage with industry stakeholders to shape its approach.

This effort marks a shift in direction for the SEC, which, under former Chair Gary Gensler, had pursued a “regulation by enforcement” approach. Many in the industry criticized this strategy for its lack of clarity and its tendency to penalize companies without providing clear guidelines for compliance.

However, under Commissioner Peirce’s leadership, as noted in our earlier post, the Crypto Task Force aims to create a regulatory environment that is fair, transparent, and conducive to growth in the digital asset market.

Broader Legislative Efforts to Regulate Digital Assets

Alongside the SEC’s efforts, U.S. lawmakers are also taking steps to create a comprehensive regulatory framework for digital assets and stablecoins. A joint working group, including representatives from the Treasury Department, the SEC, and the Commodity Futures Trading Commission (CFTC), is drafting legislation defining the regulatory approach for stablecoins.

This legislative effort and the SEC’s Crypto Task Force point to a growing consensus in the U.S. on the need for clear and effective regulation in the crypto space. As the SEC’s Crypto Task Force moves forward, it will continue to seek input from industry participants, investors, and other stakeholders.