On 04 February 2025, United States Securities and Exchange Commission (US SEC) Commissioner Hester M. Peirce delivered a speech titled The Journey Begins, where she discussed the launch of the US SEC’s Crypto Task Force and its commitment to establishing a structured and transparent framework for the crypto industry. She addressed past regulatory inconsistencies, enforcement-driven oversight, and the need for a clearer regulatory approach that fosters innovation while ensuring investor protection.
Peirce compared the past decade of crypto regulation to an unplanned road trip, where the agency lacked clear direction, resulting in legal ambiguity and numerous enforcement actions. She expressed confidence that the newly formed Crypto Task Force would take a more structured path, collaborating with experts across various regulatory bodies to address the challenges posed by digital assets. Her remarks made clear that the objective is to create an environment where innovation can thrive while maintaining investor protection and compliance with existing laws.
Clarifying that her views were personal and not necessarily reflective of the US SEC as a whole, Peirce acknowledged that the regulatory landscape had become increasingly complex due to years of fragmented engagement. The first bitcoin exchange-traded product application reached the US SEC in 2013, alongside the agency’s initial enforcement action involving crypto. The 2017 issuance of the DAO Section 21(a) report marked the first application of the Howey test to digital assets, shaping the agency’s regulatory stance. Despite these developments, legal uncertainty persisted, leaving many cases in litigation and regulatory questions unresolved.
The Task Force aims to establish a regulatory framework that allows industry participants to innovate while ensuring safeguards against fraudulent activities. Peirce stated that the agency would work within its statutory limits while identifying areas where Congressional intervention may be needed. She made it clear that while the US SEC is committed to oversight, it does not endorse specific crypto assets or projects and cautioned investors against expecting government intervention in speculative investments.
Peirce outlined several focus areas for the Task Force, including defining the security status of crypto assets under existing laws, identifying aspects beyond the agency’s jurisdiction, and providing interim relief for coin and token offerings facing legal uncertainty. The agency is reviewing modifications to regulatory pathways such as US SEC Regulation A and crowdfunding to facilitate compliant token offerings. Special-purpose broker-dealer regulations are also under examination to expand custody options for digital assets, while investment advisers will receive clearer guidelines on handling crypto asset custody.
Other regulatory priorities involve establishing a clear approach to crypto-lending and staking programs, refining the approval process for crypto exchange-traded products, and addressing the role of clearing agencies and transfer agents in digital asset transactions. Acknowledging the global nature of the crypto market, the Task Force is also exploring the potential for cross-border regulatory sandboxes to foster international collaboration on emerging digital asset technologies.
The timeline for these efforts remains uncertain, with Peirce acknowledging the complexity of undoing past regulatory missteps and resolving ongoing litigation. She urged patience from stakeholders, affirming that the Task Force intends to take an organised and legally sound approach. Progress has already begun, including the rescission of Staff Accounting Bulletin 121, but much remains to be done before a fully defined regulatory framework can be achieved.
Peirce invited public participation in shaping crypto regulations, encouraging written submissions and engagement through scheduled meetings.
(Source: https://www.sec.gov/newsroom/speeches-statements/peirce-journey-begins-020425)
