SEC's Crypto Task Force Engages With Digital Asset Firms Amid Regulatory Shifts

The US Securities and Exchange Commission (SEC) crypto task force, led by Hester Peirce, has been actively engaging with representatives from digital asset companies as the agency considers potential regulatory changes. On April 24, the task force held a meeting with representatives from ondo Finance and the law firm Davis Polk and Wardwell. The discussion focused on the issuance and sale of wrapped, tokenized versions of publicly traded US securities. Ondo Finance had previously donated $1 million to Donald Trump’s inauguration fund, and the law firm had announced its representation of Trump’s social media company, Truth Social, in launching crypto-linked exchange-traded funds.

The meeting request from Ondo Finance indicated that the firm intended to discuss registration requirements for tokenized securities, compliance with financial laws, and the possibility of establishing a regulatory sandbox. The firm did not respond to requests for comment at the time of the meeting.

This meeting follows the departure of former SEC chair Gary Gensler and the appointment of Paul Atkins, a former commissioner and Trump appointee, as the new leader of the agency. Atkins was sworn in on April 21 but has yet to implement his proposed crypto agenda.

On April 25, the crypto task force is scheduled to host a roundtable event to discuss custody issues, with participants including representatives from Kraken, Anchorage Digital Bank, and wisdomtree. The growing demand for digital asset custody in the US, following the anticipated approval of crypto exchange-traded funds in 2024, has prompted this discussion.

The SEC’s intentions regarding crypto enforcement cases under Atkins remain unclear. While the commission has stated its commitment to pursuing cases involving fraudulent activity, it dropped a complaint against Hex founder Richard Heart on April 21. The agency has also announced the cessation of investigations or lawsuits against several firms, including Ripple, coinbase, and Kraken, all of which have ties to Trump’s 2024 campaign or inauguration fund.

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