SEC Announces Four Cryptocurrency Roundtables for 2024

The Securities and Exchange Commission (SEC) has announced plans to host four cryptocurrency roundtables in the coming months, continuing its efforts to bring clarity to the regulatory landscape of the cryptocurrency industry. The agency, under the leadership of Acting Chair Mark Uyeda, aims to foster a more collaborative approach with the crypto sector, marking a shift from the hardline stance taken during the tenure of former Chair Gary Gensler.

The first roundtable, titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” is scheduled for April 11. This event will focus on adapting regulations to the unique characteristics of cryptocurrency markets, addressing the challenges and opportunities presented by this rapidly evolving sector.

The second roundtable, set for April 25, will delve into the topic of crypto custody with the theme “Know Your Custodian: Key Considerations for Crypto Custody.” This session will explore best practices for storing and protecting crypto assets, a critical aspect of the industry that has garnered significant attention from regulators and investors alike.

On May 12, the SEC will host a roundtable on tokenization, titled “Tokenization – Moving Assets Onchain: Where TradFi and DeFi Meet.” This discussion will examine how traditional financial assets can be represented and traded on blockchain networks, bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi).

The final roundtable in the series, scheduled for June 6, will tackle the growing sector of decentralized finance under the theme “DeFi and the American Spirit.” This event will explore the implications of blockchain-based financial services that operate without central intermediaries, a topic of increasing relevance as DeFi continues to gain traction.

These roundtables follow the first such event held on March 27, which discussed the security status of tokens. That initial meeting brought together industry lawyers to address one of the most contested areas of crypto regulation, setting the stage for the upcoming discussions.

The roundtables are organized by the SEC’s Crypto Task Force, established on January 21 by Acting Chair Mark Uyeda. The task force aims to create a workable framework for cryptocurrency regulation, and these discussions are seen as a crucial step in that process. Commissioner Hester Peirce, who leads the task force, emphasized the value of these discussions, stating that they provide an opportunity for the SEC to hear from experts and address regulatory issues.

All four roundtables will be open to the public, with options to attend in person at the SEC headquarters in Washington, DC, or to watch online. The agency has not yet announced the specific agendas or speakers for each event, but it has invited interested parties to email the Crypto Task Force to be considered as panelists.

The SEC’s changing approach to crypto regulation comes during the early months of the Trump administration. Industry observers have noted that the agency seems to be taking a more collaborative approach with the crypto sector, a departure from the enforcement-heavy tactics of the previous administration. This shift is evident in the dismissal of some enforcement actions against crypto firms and the review of proposed rules that would tighten crypto custody standards for investment advisers.

Acting Chair Uyeda has indicated plans to scrap a rule proposed during the Biden administration that would tighten crypto custody standards for investment advisers. He announced this intention on March 17, further showing the agency’s new direction. In a March 10 speech, Uyeda mentioned he had asked SEC staff to explore options for abandoning parts of proposed changes that would expand regulation of alternative trading systems to include crypto firms. These changes would have required such firms to register as exchanges.

In summary, the SEC’s upcoming roundtables on cryptocurrency represent a significant step in the agency’s efforts to bring clarity and collaboration to the regulatory landscape of the industry. By engaging with experts and stakeholders, the SEC aims to create a workable framework for cryptocurrency regulation that addresses the unique challenges and opportunities presented by this rapidly evolving sector. The shift in approach, from enforcement to collaboration, reflects the agency’s commitment to fostering innovation while protecting investors and maintaining market integrity.