SEC Task Force Signs New Era for Crypto ETFs
Securities and Exchange Commission announced A new crypto task force dedicated to developing a clear regulatory framework for digital assets marks a shift from its previous enforcement-oriented approach.
The initiative, announced by Acting SEC Chairman Mark T. Uyeda and led by Commissioner Hester Pearce, comes as funders await clearer guidelines for launching investment products—a development that could reshape how companies offer digital asset offerings after years of regulatory uncertainty.
According to the SEC announcement, the task force will work with various SEC departments, other federal agencies, and the public to create common sense regulatory approaches. Under Pearce’s leadership, the group aims to provide ways to register and create intelligent expression frameworks.
“One of the mandates of the task force is to create a clear path of registration for crypto market participants,” Amy Lynch, founder and president of strategic consulting firm FrontLine Compliance, told etf.com in an email. Despite the current path, the process has a lot of room for improvement.
The task force aims to address protectionist laws that have previously hindered crypto product innovation, Lynch said. “The current protection rules do not apply to cryptocurrencies or digital assets,” she said.
In the year A proposed 2023 conservation bill attempted to address digital assets, but “the market fell short of what it needed to be,” Lynch noted. The Task Force may revise these requirements through the SEC’s Division of Investment Management.
Coordination between regulators will play a key role as the framework is developed. “There needs to be coordination with the (Commodity Futures Trading Commission) especially if the definition of a security is improved to increase clarity on when a cryptocurrency is a security and when it’s a commodity,” Lynch explained.
While regulatory changes will take time, Lynch points out that the initiative opens up new opportunities. “The floodgates are now open, and now is the time to send money to applications as we see many more digital asset ETFs coming to market next year,” he added.