- The SEC’s Crypto Task Force declared Bitcoin isn’t a security, boosting market confidence.
- Bitcoin’s price rose slightly after the SEC’s non-security statement confirmation.
- The SEC is working on clear regulations for cryptocurrencies that are beyond Bitcoin.
In the much-anticipated roundtable held by the U.S. Securities and Exchange Commission (SEC), Commissioner Hester Peirce, the head of the crypto task force stated that the agency has finally embraced the chance to work with the crypto industry and hash out policy for overseeing digital assets transactions.
The roundtable which took place on Friday in Washington DC featured a diverse panel of experts including Collins Belton, Sarah Brennan, Chris Brummer, and Lewis Cohen. The discussion set the perfect platform for the SEC’s approach to digital assets. Further, the regulators jointly agreed that Bitcoin is not a security as it was sufficiently decentralized. This statement garnered wide attention, significantly spiking the price of the coin to $84,217.08.
According to CoinMarketCap data, the asset showed a 0.43% increase over the past 24 hours, maintaining a market capitalization of $1.67 trillion, a 0.58% rise. Nonetheless, the 24-hour trading volume shrunk by 32.50% and settled at $17.23 billion. The token has a fully diluted valuation of $1.76 trillion and a maximum supply of 21 million BTC.
SEC’s Task Force Pushes for Clearer Crypto Regulations
The SEC’s crypto task force session highlighted Bitcoin’s unique position in the digital asset space. While BTC is recognized as not a security, continued debates continue about other assets. Acting Chairman Mark T. Uyeda stressed the need for clear guidelines and pushed for notice-and-comment rulemaking to resolve classification issues. This marks a step toward creating a framework to govern digital assets, which have grown exponentially.
Despite resistance from crypto skeptics, the SEC is moving toward tailored regulations for the industry. This includes discussions on disclosure requirements for digital assets that do not qualify as securities. The task is to distinguish those digital commodities that attract SEC regulation and apply jurisdiction to token sales, which are generally private offerings not governed by structured disclosure.
Diversity and Complexity in the Crypto Market
The roundtable also discussed the diverse nature of the crypto market. Elaborating on Bitcoin’s new status, the token remains the only digital asset not categorized as a security, unlike others that have faced legal scrutiny. The collapse of the FTX crypto exchange, which issued its token FTT, exemplifies the risks associated with centralized digital assets.
This miserable split that occurred at FTX drove FTT to lose its value altogether, highlighting the need for well-defined regulations to safeguard investors from possible risks. Thereafter, the SEC will put up a proposal as there is much anxiety about it for handover to the full commission for consideration.
Related: XRP Jumps 13% After The End of Ripple-SEC Lawsuit
SEC Faces Criticism and Requests for Clarity
Earlier in August 2022, Elizabeth Warren and Jake Auchincloss raised concerns in an open letter to Uyeda. The letter expressed the Congress people’s concern regarding the SEC’s position on meme coins, questioning why certain staff statements were excluded in the formal regulations and inquiring as to whether there were any communications with the White House regarding these statements.
They also asked the SEC how it would distinguish between ‘real’ meme coins and those that are not qualified for regulatory scrutiny. The lawmakers sought an explanation regarding how the SEC intends to differentiate between legitimate meme coins and the ones that cannot be deemed worthy of regulatory consideration.
