SEC’s Approach to Crypto: Moving from Crackdowns to Clear, Innovation-Focused Guidance

The U.S. Securities and Exchange Commission (SEC) has released an updated regulatory plan for Spring 2025, putting a spotlight on fostering innovation, safeguarding investors, and improving oversight within the cryptocurrency industry. At the forefront of these changes is Commissioner Hester Peirce, who now heads the SEC’s newly formed Crypto Task Force. Under her guidance, the agency is moving away from the previous administration’s enforcement-centric stance, instead prioritizing the development of transparent and innovation-supportive regulations for digital assets The SEC’s Crypto Task Force Maps Its Journey [ 10 ].

The SEC’s new agenda features proposals aimed at clarifying the regulatory landscape for issuing, holding, and trading crypto assets. One of the main goals is to set out “clear rules of the road” that both deter misconduct and encourage efficient markets. The agency also intends to revisit the Consolidated Audit Trail (CAT)—a system that has faced criticism over its expense and privacy concerns—especially in light of a recent court decision Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ]. The agenda further includes deregulatory initiatives designed to lessen compliance demands, such as making capital-raising processes simpler and updating disclosure obligations Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ].

Peirce’s Crypto Task Force has made it a priority to resolve uncertainties in securities regulations, particularly regarding non-fungible tokens (NFTs) and stablecoins. In a statement from May 2025, Peirce clarified that many NFTs—especially those that reward creators through smart contracts—do not fall under the definition of securities as per current laws. This approach supports the task force’s broader mission to differentiate between conventional securities and emerging crypto assets . The group is also considering safe harbor provisions, which would allow for innovation without immediate securities registration, provided that issuers adhere to disclosure requirements .

The agenda signals a broader move toward deregulation. The SEC has eliminated rules from the previous administration that were considered “ineffective, inefficient, or not properly aligned” with its legal mandate. For instance, it has withdrawn proposals for stricter custody regulations on crypto businesses, opting instead for more adaptable, innovation-oriented oversight Statement on the Spring 2025 Regulatory Agenda - SEC.gov [ 1 ]. The agency is also re-evaluating its stance on stablecoins, issuing new guidance that clarifies “covered” stablecoins—those fully backed by high-quality reserves and used for payments—are not subject to securities laws U.S. Crypto Regulation at a Crossroads: SEC Updates and the New Stablecoin Law Explained [ 4 ].

A major aspect of the agenda is updating the Investment Advisers Act of 1940 to better fit crypto-related businesses. This includes revising custody rules for digital assets, following the rollback of previous restrictive measures. These updates are intended to make compliance easier for brokers and dealers and to provide greater certainty for digital asset transactions SEC’s Crypto Agenda 2025: New Rules for Digital Assets [ 3 ]. At the same time, the SEC is working with the Commodity Futures Trading Commission (CFTC) to enable regulated exchanges to list spot crypto assets, a move that could boost institutional participation Crypto Task Force - SEC.gov [ 7 ].

The regulatory landscape is changing quickly, with the SEC’s initiatives complementing the European Union’s Markets in Crypto-Assets (MiCA) framework. While MiCA enforces consistent rules throughout the EU, the U.S. under Peirce is taking a “technology-neutral” approach to avoid hindering innovation. The SEC’s emphasis on deregulation and clarity stands in contrast to the EU’s focus on financial stability and monetary control Crypto Rule Comparison: the US GENIUS Act versus EU's MiCA [ 5 ].

Looking forward, the SEC’s plan marks a crucial turning point for the crypto industry. The rulemaking efforts of the Crypto Task Force, together with legislative interest in measures like the GENIUS Act, could significantly alter the regulatory environment. Peirce has stressed the importance of “practical solutions” that strike a balance between protecting investors and encouraging innovation—a perspective that could shape regulatory trends worldwide. As the SEC advances its agenda, its decisions will likely play a key role in determining whether the U.S. retains its leadership in the crypto space or falls behind other regions .