Crypto in the USA: SEC’s Change of Course Begins with New Task Force

Cryptocurrency in the USA: Course Change of the SEC Begins with New Task Force

The U.S. Securities and Exchange Commission (SEC) under Gary Gensler has long been criticized for its rigid stance against the crypto industry. But a newly established task force within the SEC should now ensure that the agency prepares better for the crypto future and communicates more transparently.

Investors in the U.S. were likely not to celebrate the SEC under Gary Gensler in recent years when it came to their activities in the cryptocurrency market. The SEC often accused of unclear rules and an aggressive policy towards significant industry participants such as Ripple, Coinbase, and Binance, has not provided the hoped-for clarity and regulatory certainty. But this development could now undergo a rethink, as reported by Bloomberg among others. Internally, a task force has been formed within the SEC, which carries input from both market observers and SEC employees.

The newly formed task force, according to reports, aims to understand the complex topic of cryptocurrency better and avoid creating powers that be that settle cases in court. The working group should play an important role in shaping future rules for the handling of cryptocurrencies in the U.S. and communicate with the industry.

For crypto investors and companies in the U.S., the hope is that the ongoing disputes and regulatory uncertainty will decrease. The SEC has not yet issued navigational aid through many controversial court proceedings. With a clearer regulatory framework provided by the SEC, which could be initiated by the new task force, a crucial breakthrough might come on the way to proper rules for cryptocurrencies.

The internal task force complements an overview of the status quo, initiated by the Biden administration. The current legal dispute between the SEC and Ripple, which concerns the classification of the cryptocurrency XRP, further highlights the need for clear guidelines in dealing with cryptocurrencies. With a rethink at the SEC, the crypto industry could already expect increased engagement and clearer instructions in 2024.