SEC Acting Commissioner: Notice-and-Comment Rulemaking Will Be Applied to Crypto

The Securities and Exchange Commission’s (SEC) Crypto Task Force held the first of what is to be a series of roundtables focused on different aspects of the regulation of crypto assets.

The Friday (March 21) roundtable was titled, “How We Got Here and How We Get Out — Defining Security Status” and focused on the legal issues involved in classifying crypto assets under federal securities laws.

SEC Acting Chairman Mark T. Uyeda said in his remarks at the roundtable that because it’s not unusual to see differences in opinions among various courts, the SEC and its staff have stepped in to provide guidance in the past when dealing with other issues. 

“This approach of using notice-and-comment rulemaking or explaining the Commission’s thought process through releases — rather than through enforcement actions — should have been considered for classifying crypto assets under the federal securities laws,” Uyeda said. “Today’s roundtable is an important first step in addressing that concern.”

SEC Commissioner Hester M. Peirce said in her remarks that the formation of the Crypto Task Force two months ago marked a restart of the SEC’s approach to crypto regulation.

“To do this work well, we have to tackle some foundational questions about security status,” Peirce said.

Those questions include: What makes something a security? Is that status permanent? How does decentralization affect the analysis? Can we translate the characteristics of a security into a simple taxonomy that will cover the many different types of crypto assets that exist today and will exist in the future?

SEC Commissioner Caroline A. Crenshaw said in her remarks that when discussing the security status of crypto assets, “the stakes could not be higher,” because this involves the legal underpinnings of the U.S. capital markets.

“That said, I understand there is a view that current law is not working for crypto,” Crenshaw told the roundtable’s attendees. “And I agree that policy must keep pace with new products and technologies. I welcome a diversity of views, and urge you to present those views with careful consideration of the potential benefits and costs of proposed actions.”

The SEC announced its Crypto Task Force Jan. 21, saying the group is focused on developing a “comprehensive and clear” regulatory framework for crypto assets.

The post SEC Acting Commissioner: Notice-and-Comment Rulemaking Will Be Applied to Crypto appeared first on PYMNTS.com.