“The Journey Begins” Commissioner Hester Peirce’s Statement

Crypto Task Force (CTF)

• On January 21, 2025, the SEC’s Acting Chairman, Mark T. Uyeda, announced the formation of an SEC Crypto Task Force (CTF) led by Commissioner Hester Peirce.
• On February 4, 2025, Peirce laid out 10 of the CTF’s top priorities, which are not exhaustive, nor are they presented in order of priority or order of expected completion.
• Overall, the focus of the CTF is to take a new approach to regulating digital assets and create clear and practical policy measures geared towards innovation.

Top 10 Priorities of the CTF

1. Security Status: The CTF is examining various crypto assets to clarify their status under securities laws.
2. Scoping Out: The CTF will identify areas outside the SEC’s jurisdiction and welcomes no-action letter requests for clarity on circumstances where the staff will not recommend enforcement action.
3. Coin and Token Offerings: The CTF may recommend temporary relief for coin or token offerings, allowing them to trade freely as non-securities if certain conditions are met, until permanent rules are established.
4. Registered Offerings: The CTF will consider modifying existing registration paths, like Regulation A and crowdfunding, to facilitate token offerings.
5. Special Purpose Broker Dealer: The CTF will explore updates to the broker-dealer no-action statement to cover broker-dealers that custody both crypto asset securities and non-securities.
6. Custody Solutions for Investment Advisers: The CTF aims to create a regulatory framework for investment advisers to custody client assets themselves or with a third-party safely.
7. Crypto-Lending and Staking: The CTF will clarify the applicability of securities laws to crypto-lending and staking programs.
8. Crypto Exchange-Traded Products: The CTF will provide guidance on approving new crypto exchange-traded products and modifying existing ones but must first progress the law on custody and other issues.
9. Clearing Agencies and Transfer Agents: The CTF will work on harmonizing blockchain technology with clearing agency and transfer agent rules.
10. Cross-Border Sandbox: The CTF is considering ways to facilitate cross-border experimentation on a limited and temporary basis, with potential for long-term solutions.

Implications for the Digital Assets Industry

• Although the list is not exhaustive, and many initiatives are still far from complete, Peirce’s statement represents a significant shift toward a more structured and collaborative digital assets regulatory framework.
• A more predictable regulatory environment will help to reduce many uncertainties regarding the registration of crypto assets, facilitating greater activity, growth, and innovation within the United States, and ultimately across borders.