Hester Peirce will lead a new crypto task force.

One day after SEC Chair Gary Gensler departed alongside the inauguration of President Donald Trump, the U.S. Securities and Exchange Commission announced a crypto task force Tuesday in a pointed announcement that's critical of the regulator's past actions.

"Drawing from talented staff across the agency, the task force will collaborate with Commission staff and the public to set the SEC on a sensible regulatory path that respects the bounds of the law," This is how the sentence reads: "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. Clarity regarding who must register, and practical solutions for those seeking to register, have been elusive."

"The result has been confusion about what is legal, which creates an environment hostile to innovation and conducive to fraud," Continue reading "The SEC can do better."

The SEC's Acting Chairman Mark Uyeda, appointed to the role on Monday, announced the news Tuesday. SEC commissioner Hester Peirce is a crypto enthusiast who earned her nickname. "Crypto Mom," The task force will be led by a crypto firm, with the aim of striking a collaborative tone.

Uyeda Peirce had a conflict with Gensler when he was the SEC’s chair. Uyeda and Peirce were divided on enforcement measures against Stoner Cats NFT and Flyfish Club, an NFT-based restaurant membership plan.

The commissioners in both cases argued against the SEC’s position that NFTs are offered as unregistered security, saying that it was too eager to pursue investigations on the same level of “Star Wars collectibles” Artwork in limited editions.

The SEC’s current approach to assessing the risk of a financial transaction is now likely over. The SEC is working to streamline the process. “craft sensible disclosure frameworks,” It will use its enforcement resources with prudence, the agency added.

After the collapse of FTX, which was widely publicized in 2022 the SEC launched a flurry of enforcement actions, suing some of the largest crypto companies in the world, such as Binance and Coinbase. The SEC continued its suit against Ripple over the previous sales of XRP cryptocurrency.

“The rules have already been published,” Gensler claimed in 2023 saying that many crypto companies chose to not comply with the securities laws. This was true even though SEC “stands ready to help them to come into compliance.”

Nature is healing. https://t.co/ajqMRfRDzZ

— paulgrewal.eth (@iampaulgrewal) January 21, 2025

This new task force of the SEC will work with other agencies such as the CFTC to coordinate their efforts, a step that echoes Trump’s anticipated reform. The SEC will assist Congress in making changes to the regulatory framework. This signals that the agency would be open to the now-stalled Market Structure Bill passed by the House of Representatives.

"Nature is healing," Coinbase Chief Legal Officer Paul Grewal said on X (formerly known as Twitter).

Editor's note: This story was updated after publication with additional details.

Andrew Hayward is the editor