SEC's Crypto Shift: From Enforcement to Innovation-Driven Clarity

The U.S. Securities and Exchange Commission (SEC) has unveiled a revised regulatory agenda for Spring 2025, emphasizing innovation, investor protection, and streamlined oversight in the crypto sector. Central to this shift is Commissioner Hester Peirce, who leads the newly established SEC Crypto Task Force. Her leadership marks a departure from the enforcement-heavy approach of the previous administration, with a focus on creating clear, innovation-friendly rules for digital assets The SEC’s Crypto Task Force Maps Its Journey^[10].

The SEC’s agenda includes proposals to clarify the regulatory framework for crypto asset issuance, custody, and trading. A key priority is establishing “clear rules of the road” to deter bad actors while supporting market efficiency. The agency also plans to review the Consolidated Audit Trail (CAT), a system criticized for high costs and data privacy risks, following a recent court ruling Statement on the Spring 2025 Regulatory Agenda - SEC.gov^[1]. Additionally, the agenda outlines deregulatory measures to reduce compliance burdens, such as simplifying capital-raising pathways and modernizing disclosure requirements Statement on the Spring 2025 Regulatory Agenda - SEC.gov^[1].

Peirce’s Crypto Task Force has prioritized addressing ambiguities in securities law, particularly for non-fungible tokens (NFTs) and stablecoins. In a May 2025 statement, Peirce clarified that many NFTs—especially those compensating creators via smart contracts—do not qualify as securities under current laws. This aligns with the task force’s broader goal of distinguishing between traditional securities and novel crypto assets . The team is also exploring safe harbor frameworks to allow innovation without immediate securities registration, provided issuers meet disclosure standards .

The agenda reflects a broader shift toward deregulation. The SEC has withdrawn rules from the prior administration deemed “not smart, effective, or appropriately tailored” to its statutory authority. For example, it has rescinded proposals to impose stricter custody rules on crypto firms, instead favoring flexible, innovation-aligned oversight Statement on the Spring 2025 Regulatory Agenda - SEC.gov^[1]. The agency is also rethinking its approach to stablecoins, with new guidance clarifying that “covered” stablecoins—those fully backed by high-quality reserves and used for payment—do not fall under securities laws U.S. Crypto Regulation at a Crossroads: SEC Updates and the New Stablecoin Law Explained^[4].

A critical component of the agenda is modernizing the Investment Advisers Act of 1940 to accommodate crypto firms. This includes adapting custody requirements for digital assets, a move that follows the repeal of earlier restrictive rules. The changes aim to ease compliance for brokers and dealers while providing clarity for digital asset transactions SEC’s Crypto Agenda 2025: New Rules for Digital Assets^[3]. Meanwhile, the SEC is collaborating with the Commodity Futures Trading Commission (CFTC) to allow regulated exchanges to list spot crypto assets, a step that could accelerate institutional adoption Crypto Task Force - SEC.gov^[7].

The regulatory environment is evolving rapidly, with the SEC’s actions complementing the EU’s Markets in Crypto-Assets (MiCA) framework. While MiCA enforces harmonized rules across the EU, the U.S. approach under Peirce emphasizes a “technology-neutral” strategy to avoid stifling innovation. The SEC’s focus on deregulation and clarity contrasts with the EU’s emphasis on financial stability and monetary sovereignty Crypto Rule Comparison: the US GENIUS Act versus EU's MiCA^[5].

Looking ahead, the SEC’s agenda signals a pivotal phase for crypto markets. The Crypto Task Force’s rulemaking efforts, combined with congressional interest in legislation like the GENIUS Act, could reshape the sector’s regulatory landscape. Peirce has emphasized the need for “practical solutions” that balance investor protection with innovation, a stance that may influence global regulatory trends. As the agency moves forward, its actions will likely determine whether the U.S. maintains its leadership in crypto or cedes ground to other jurisdictions .