SEC Crypto Task Force To Tackle Financial Surveillance And Privacy

The cryptocurrency task force with the US Securities and Exchange Commission (SEC) is planning to hold another roundtable that could lead to policy changes at the financial regulator.

In a Monday notice, the SEC said the crypto task force, headed by Commissioner Hester Peirce, would host a public roundtable on financial surveillance and privacy on Oct. 17. The event will mark the sixth roundtable focused on issues related to digital assets at the commission’s Washington, D.C., offices since the departure of former SEC Chair Gary Gensler. 

“Understanding recent developments in privacy-protecting tools will assist the SEC and other financial regulators as we work on policy solutions in the crypto space,” said Peirce.

The crypto-focused roundtable events, which include a series of 10 meetings across the US starting in August and running through December, come as the SEC is considering proposed rule changes that could significantly impact market participants.

On Thursday, the commission proposed “certain exemptions and safe harbors” related to the offer and sale of crypto assets and modifying “broker-dealer financial responsibility rules,” lessening the burden on US-operating crypto companies.

Related: Nasdaq asks SEC for rule change to trade tokenized stocks

Establishing clarity on digital assets?

Since January, the SEC and Commodity Futures Trading Commission (CFTC) — the two primary financial regulators in the US — have appeared to soften their approach to enforcement actions and rules affecting crypto companies, by dropping several investigations and lawsuits.

The CFTC leadership now consists solely of Acting Chair Caroline Pham, who said in August that the agency would follow the White House’s lead on crypto policy.

In the last seven days, the two regulators said they would be exploring a potential shift to 24/7 capital markets and regulations for crypto derivatives and a coordinated effort to oversee and enable spot crypto trading.

The latter move was in accordance with recommendations released in July by the President’s Working Group on Digital Asset Markets.

All authority and responsibilities of both the SEC and CFTC, however, may soon be subject to a proposed law working its way through Congress.

The US Senate’s version of a digital asset market structure bill, dubbed the Responsible Financial Innovation Act, could become law before 2026, according to Senator Cynthia Lummis, one of the lawmakers pushing for its passage.

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