New SEC Acting Chair Uyeda Announces Launch of Crypto Task Force

SEC Commissioner Mark Uyeda has been appointed Acting Chair of the commission and is quickly moving to establish a task force aimed at creating a clear and comprehensive regulatory framework for crypto assets.

The SEC's announcement criticized the agency's previous approach to regulating digital assets, stating that its actions had fostered an environment hostile to innovation and conducive to fraud. The release noted that the SEC had primarily relied on enforcement actions, often using untested legal interpretations, and had failed to provide clarity on who needs to register and how to register, leaving key solutions unclear.

Commissioner Hester Peirce, along with Uyeda, will co-lead the task force, with Richard Gabbert and Taylor Asher serving as its chief of staff and chief policy advisor, respectively. The task force will involve SEC staff from across the agency and plans to engage with investors, industry professionals, and academics to create a regulatory environment that protects investors, supports innovation, and promotes market integrity. The public will also be invited to provide input, with roundtable discussions planned and submissions welcome at Crypto@sec.gov.

The SEC’s role in regulating the crypto sector has been a contentious issue, particularly under former Chair Gary Gensler, who pushed for numerous enforcement actions, arguing they were necessary to protect investors in a market rife with fraud. In contrast, supporters of crypto, including Commissioner Peirce, argue that the SEC overstepped its authority.

President Donald Trump recently announced Paul Atkins as his nominee to replace Gensler as SEC Chair, with Atkins expressing a more favorable stance toward digital assets. Some believe that one of Atkins' first moves could be to clarify that crypto and digital assets fall outside the SEC's regulatory scope.

Uyeda's appointment as Acting Chair follows Gensler’s departure during Trump’s inauguration, and Sanjay Wadwha, the acting director of the enforcement division, will leave the agency at the end of the month after two decades of service. The SEC has not yet announced a replacement for Wadwha.