The U.S. Securities and Exchange Commission (SEC) is taking a new approach to regulating the crypto industry with the launch of its new Crypto Task Force, moving away from past enforcement-heavy tactics. Led by Commissioner Hester Peirce, often referred to as “Crypto Mom” for her supportive stance on digital assets, the task force aims to address long-standing uncertainties in the crypto space. 

What SEC Can & Can’t Do?

In a recent statement, Peirce outlined that the Crypto Task Force has a big job ahead. One of its main goals is to settle the long-debated question of whether cryptocurrencies should be classified as securities or commodities. 

It also aims to create a smoother registration process for crypto firms, a task that has been a challenge under existing SEC rules.

Another key focus is crypto lending and staking programs, two areas that have faced regulatory scrutiny. The task force will determine how these activities fit into the current legal framework and whether any adjustments are needed. 

Additionally, the SEC will work to define its role in the crypto space and clarify which aspects of the market fall outside its authority.

Clearing the Path for Innovation

This change in direction comes just weeks after Gensler stepped down as SEC Chair. His leadership was marked by a strict “regulation by enforcement” strategy, which many in the industry criticized for being unclear and overly aggressive.

Peirce compared the SEC’s previous handling of crypto regulations to a chaotic road trip—full of sudden stops, unclear directions, and an uncertain destination. 

However, Peirce noted that the new task force will focus on creating fair and transparent rules rather than simply punishing companies after the fact.

Focus on Other Crypto ETFs 

In addition to regulatory clarity, Peirce also mentioned that the SEC is also reviewing applications for new crypto exchange-traded funds (ETFs). Following the approval of Bitcoin and Ethereum ETFs in 2024, the agency is now considering funds for other cryptocurrencies like XRP, Solana, and Dogecoin. 

In addition, there are proposals to introduce new features for crypto ETFs, such as staking rewards for investors. Peirce promised that the SEC would provide clear explanations for its decisions on these applications. 

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