The important SEC Cryptocurrency Conference ends – here are the things discussed and the results

The Securities and Exchange Commission (SEC) held a roundtable of the Cryptody Task Force for Securities Lawyers and Cryptocurrency Experts to discuss long-standing questions. How is security defined in the digital asset sector?

The Roundtable, held at SEC headquarters in Washington, brought together a panel of legal experts and crypto industry figures to discuss the agency’s evolving approach to regulation. Under previous administrations, the SEC’s strategy was often criticized for its “regulation by enforcement” approach.

Miles Jennings, an adviser to A16Z Crypto, criticised the SEC’s previous regulatory efforts, claiming it failed to meet the agency’s core mission of investor protection, capital formation and market efficiency.

“I don’t think anyone can claim that the last administration’s approach to the industry has achieved the SEC’s goals,” Jennings said. “The bottom line is that the current approach is clearly a failure and we have to do better.”

The creation of the Crypto Task Force shows a shift in the SEC’s stance following the departure of former chairman Gary Gensler and the transition to a new Trump administration. Gensler took a proactive regulatory stance by classifying most cryptocurrencies as securities and pursuing enforcement measures against major crypto companies.

The SEC signalled a fresh start under acting chairman Mark Ueda. Uyeda appointed Commissioner Hester Peirce, a longtime Crypto advocate, and led the new task force. “This is a reboot of the committee’s approach to cryptographic regulation,” Perth said in the roundtable.

One of the key points of discussion at the event was what security was. Rodrigo Seira, a special advisor to Cooley LLP, argued that simply having investment intent doesn’t automatically make assets secure.

“Having an investment intention behind a purchase doesn’t make it security,” Seira likened the issue to buying a piece of art.

However, John Reed Stark, founder of John Reed Stark Consulting LLC and vocal critic of cryptocurrency, expressed his dissent. He argued that most crypto buyers are investors and it is the SEC’s responsibility to protect them. He acknowledged that regulations need to be improved, but noted that it is important to maintain investor confidence.

*This is not investment advice.