SEC Signals New Era of Cooperation with Crypto Industry

The U.S. Securities and Exchange Commission (SEC) is signaling a more collaborative approach toward crypto regulation. Commissioner Hester Peirce, head of the SEC’s crypto task force, expressed optimism at the agency’s first crypto roundtable, titled “Spring Sprint Toward Crypto Clarity,” emphasizing the staff’s readiness to engage with the industry to develop a workable regulatory framework.

Peirce posed a key challenge: “Can we translate the characteristics of a security into a simple taxonomy for today’s and tomorrow’s crypto assets?” She also suggested that non-fungible tokens (NFTs) could be next for clearer guidance.

Acting Chairman Mark Uyeda, also present, acknowledged that some staff statements—like those excluding memecoins and crypto mining from securities law—lack binding legal authority. However, he emphasized the Commission’s willingness to explore broader interpretations to address growing legal uncertainty. Uyeda criticized past reluctance to issue clear policy interpretations and highlighted the need for proactive rulemaking instead of relying solely on enforcement actions.

The panel discussion featured legal experts advising crypto startups. Sarah Brennan, Delphi Ventures’ general counsel, noted that regulatory ambiguity forces early-stage projects to stay private longer, mimicking IPO behavior, which stifles innovation and decentralization. Former SEC official John Reed Stark added that many crypto assets still lack real utility, raising concerns over speculative activity.

Meanwhile, lawmakers like Sen. Elizabeth Warren and Rep. Jake Auchincloss questioned the process behind recent SEC statements, urging transparency and formal rulemaking.

Peirce defended the use of informal guidance, saying it helps clarify how the SEC interprets existing laws. As budget cuts loom over the agency, she stressed the need to retain experienced staff.

This shift may mark a new chapter in U.S. crypto regulation, with the SEC showing signs of openness to engage and adapt.