SEC Launches Crypto 2.0 Task Force, Aims for 100% Transparency in Digital Asset Transactions

The U.S. Securities and Exchange Commission (SEC) has initiated a series of roundtable discussions as part of its "Spring Sprint Toward Crypto Clarity" initiative. The first roundtable, held on March 21, 2025, focused on defining the security status of digital assets and brought together 11 crypto attorneys and legal experts to delve into the complexities of crypto regulation. This event marked the beginning of a series aimed at addressing the intricate legal issues surrounding the classification and regulation of crypto assets.

The SEC's Crypto Task Force, under the leadership of Commissioner Hester Peirce, has been actively engaging with industry leaders in preparation for the formation of the Crypto 2.0 Task Force. These discussions have revolved around revisiting the SEC’s longstanding position that many cryptocurrencies qualify as securities. Firms such as Paradigm, Zero Hash, and the Crypto Council for Innovation have submitted documents urging regulators to reconsider previous enforcement stances. Notably, the commission recently dropped investigations into several prominent companies, including Consensys, Robinhood, Gemini, OpenSea, and Coinbase.

The SEC's new initiative, the Crypto 2.0 Task Force, introduces an effort to regulate both on-chain and off-chain digital asset transactions, aiming to align them with traditional securities standards. A key component of this initiative is the Digital Asset Reporting and Tracking System (DART), designed to enhance transparency and oversight by recording both public blockchain transactions and private off-chain trades. This system aims to track digital asset ownership across different platforms, addressing long-standing concerns over market manipulation and data discrepancies in off-chain trading.

The SEC has clarified its stance, stating that digital asset securities transactions—both on-chain and off-chain—should adhere to the same trade reporting requirements as standard securities. This regulatory approach is intended to protect retail investors, provide greater legal clarity, and maintain market integrity. The agency has also acknowledged the role of decentralized exchanges (DEXs) in crypto markets but has highlighted the regulatory challenges associated with them. DEXs, which rely on smart contracts for trade execution and settlement, present difficulties for regulators in enforcing compliance and ensuring investor protections.

The SEC's shift toward proactive collaboration with industry stakeholders marks a turning point in balancing innovation with investor protection. The agency is urging a collaborative effort with the Commodity Futures Trading Commission (CFTC) to establish clearer regulatory guidelines. The proposed DART system would act as a centralized repository, allowing regulators to monitor both publicly recorded and off-chain digital asset transactions. This initiative reflects a move away from reactive enforcement to proactive collaboration, aiming to provide clearer rules that balance innovation with investor protection.

The SEC's Crypto Task Force will host four additional roundtable discussions this spring, covering topics such as crypto custody on April 25, tokenization on May 12, and decentralized finance on June 6. These discussions are part of the agency's ongoing efforts to provide clarity on the regulation of digital assets and foster innovation in the crypto industry. The industry awaits the next steps in regulatory reform as the Crypto 2.0 Task Force takes over, with the goal of enhancing oversight and transparency in digital asset transactions.