The U.S. Securities and Exchange Commission is making a fresh attempt to clarify cryptocurrency regulations with a new public roundtable series. Dubbed the “Spring Sprint Toward Crypto Clarity,” this initiative aims to reassess how digital assets should be regulated in the country.
The first session, titled How We Got Here and How We Get Out – Defining Security Status, is scheduled for March 21. The discussion will focus on a long-standing debate: should cryptocurrencies be treated as securities or commodities?
To address this, the SEC has invited a group of legal and financial technology experts to participate in a roundtable discussion. These experts specialize in crypto law and regulation and will explore different perspectives on how digital assets should be classified. The event will be open to the public, allowing the crypto community to follow and engage with the conversation.
Shift in SEC’s Approach After Leadership Change
The launch of this series comes at a time when the SEC is changing its approach to crypto regulation. Under its previous leadership, the agency aggressively pursued enforcement actions against crypto companies. In fact, during the past few years, the SEC initiated 125 enforcement actions against various crypto-related firms. However, in the final year of its former chairman’s tenure, enforcement actions dropped by 30%, signaling a possible shift in strategy.
Since the leadership change, the SEC has even begun dropping lawsuits and investigations against major crypto platforms. Companies such as Coinbase, OpenSea, Uniswap Labs, Robinhood, and Kraken have recently seen legal actions against them withdrawn. This has raised questions about whether it will continue to take a strict stance or adopt a more flexible approach in the future.
The CFTC’s Role and Interest in Crypto
Another key player in this evolving regulatory landscape is the Commodity Futures Trading Commission (CFTC). Unlike the SEC, which has traditionally taken a more aggressive stance, the CFTC has maintained a relatively lighter enforcement approach.
In the past year, the CFTC initiated only 58 enforcement actions, and only a portion of those were related to crypto firms. Many industry participants hope that digital assets will eventually fall under the CFTC’s oversight instead of the SEC’s, as the CFTC is seen as being more open to fostering innovation rather than strictly policing the space.
Adding to speculation about its growing role in crypto regulation, the CFTC recently hosted its first-ever Crypto CEO Forum. During this event, the commission explored the idea of piloting a crypto program that focuses on tokenized non-cash collateral. While this does not confirm any major regulatory shifts, it does indicate a heightened interest in the crypto space.
SEC Commissioner Hester M. Peirce acknowledged the importance of public engagement in shaping crypto regulations. She emphasized that these roundtables will provide valuable insights that could help create a regulatory framework that works for both the industry and the government.
With this new initiative, all eyes will be on the SEC as it navigates the complexities of crypto regulation in an ever-evolving financial landscape.
