SEC Commissioner Mark Uyeda was named Acting Chair of the commission today and is quickly moving to launch a task force dedicated to “developing a comprehensive and clear regulatory framework” for crypto assets.
In detailing the task force, the unattributed SEC release was critical of the agency’s prior moves in the digital asset space, claiming the agency created “an environment hostile to innovation and conducive to fraud.”
“To 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. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive,” the unattributed release read. “The SEC can do better.”
Commissioner Hester Peirce (along with Uyeda, the fellow Republican currently on the five-member commission) will lead the task force. Uyeda’s Senior Advisor, Richard Gabbert, and Senior Policy Advisor, Taylor Asher, will act as its chief of staff and chief policy advisor, respectively. According to the release, the task force will use SEC staff across the agency.
“This undertaking will take time, patience, and much hard work. It will succeed only if the task force has input from a wide range of investors, industry participants, academics and other interested parties,” Peirce said in a statement. “We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity and supports innovation.”
The task force intends to hold roundtables, but the commission urged the public to submit input at [email protected].
The commission’s role in regulating (and bringing enforcement actions against) crypto firms and assets has remained a contentious debate among regulators and industry participants (and between commissioners).
During Gensler’s tenure, the commission brought numerous enforcement actions concerning crypto assets, arguing the moves were necessary to protect investors in an industry he argued was rife with fraud. But crypto supporters (and commissioners like Peirce, whom crypto touters dubbed “Crypto Mom” due to her support) argue the agency has overstepped its bounds with Gensler at the helm.
President Donald Trump announced that former SEC commissioner and conservative financial expert Paul Atkins was his choice for SEC chair to succeed Gensler. In a social media post, Trump claimed that Atkins “recognizes that digital assets and other innovations are crucial to Making America Greater than Ever before.”
The new president’s embrace of the industry was further underscored by the recent launch of $Trump and $Melania meme coins.
Some (including Reflection Asset Management President Jason Britton) believe one of Atkins’ first moves will be to affirm that crypto and digital assets are outside the commission’s purview.
Uyeda was named the Acting Chair today, and his move to the top spot comes after Gensler stepped down during Trump’s inauguration on Monday.
Additionally, Sanjay Wadwha, the acting director of the enforcement division, announced last week he’d leave the agency at the end of the month after 21 years with the commission. He’d succeeded Gurbir Grewal, who departed the commission last October.
“During my time as Deputy and Acting Director, I have been gratified to see market participants stepping up their compliance efforts to embrace our shared goal of protecting investors,” Wadwha said in a statement. “While the capital markets will always benefit from robust enforcement, the agency’s effectiveness at combatting securities law violations is enhanced with buy-in from market participants.”
The SEC declined to comment on who would take his place heading the enforcement division, whether on an interim or permanent basis.
