Crypto clarity? The SEC wants your input
Hester Peirce, Commissioner at the US Securities and Exchange Commission (SEC), has opened the floor for public input on crypto regulation. In a thoughtful, lengthy statement last week—titled, with a nod to Bob Dylan, “There Must Be Some Way Out of Here”—Peirce laid out a challenge: help the SEC build a clearer framework for digital assets. She notes that the existing “lack of regulatory clarity has fostered an environment in which jokers and thieves {Ed – a reference to the Dylan song} thrive, while legitimate crypto projects struggle.”
The SEC’s Crypto Task Force is wrestling with classification issues, questioning what makes a crypto asset a security, how tokenisation should be handled, and whether a safe harbour approach could work. The goal? A “taxonomy” that brings clarity to market participants while staying true to existing securities law. {Ed — regulators all over the world seem keen to use the term “taxonomy” instead of the rather more accurate “Relatively short list with some indents”. Perhaps our OIM Working Group needs to face facts and come up with a new term for XBRL metadata. Suggestions welcome!}
This follows the SEC’s recent shift in stance, including the repeal of the SAB 121 rule, which had required banks to report customer crypto holdings as liabilities — meaning that there needed to be a matching asset. As we covered earlier this month, SAB 122 reversed that decision, clearing the way for US banks to offer crypto custody. Now, with a dedicated task force on the case, the SEC is pushing further into these digital asset regulatory questions.
Crypto regulation is a high-stakes game, balancing innovation with investor protection. A clear, structured framework—rather than reactive enforcement—may well be a step forward. If you have opinions on crypto rules, (Commissioner Peirce makes it clear that they want to hear from both advocates and sceptics) now’s the time to speak up.
Read Peirce’s statement and share your input with the SEC here. And if you missed our coverage on SAB 122, catch up here.
