SEC Commissioner Hester Peirce to lead new crypto task force

The U.S. Securities and Exchange Commission's Hester Peirce will lead a crypto task force to "set the SEC on a sensible regulatory path." 

Newly appointed acting chair Mark Uyeda announced the launch of that task force on Tuesday following criticism from many in the crypto industry that the agency has previously taken a "regulation by enforcement approach."

"To date, the SEC has relied primarily on enforcement actions to regulate crypto retroactively and reactively, often adopting novel and untested legal interpretations along the way," the SEC said in a statement . "Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive."

The SEC is set to have a regulatory shift for crypto following former SEC Chair Gary Gensler's exit and as it forges on with a Republican majority. Gensler had called on crypto firms to register with the agency and said that most cryptocurrencies are securities. Some in the crypto industry fought back, saying that it's impossible to register with the agency, partly because rules were made for more traditional entities that are different from the digital asset industry.   

Uyeda has called the SEC's crypto approach a " disaster " and said guidance is needed for the crypto industry. Peirce has also slammed the agency's approach and has previously floated a three-year " safe harbor period ," where innovators are allowed to get blockchain-based digital projects up and running without having to register and follow certain federal securities laws.

Two of Uyeda's advisers, Richard Gabbert and Taylor Asher, will serve as chief of staff and chief policy advisor, respectively, for the task force. The task force will hold roundtables and will also focus on clear rules, "realistic paths to registration," disclosure and "deploy enforcement resources judiciously," according the agency's statement. It will also work within its statutes provided by Congress, the agency added.

Update: Jan 21. 6:15 p.m. UTC to include details