Donald Trump's administration has announced the first real step toward reducing regulation for the cryptocurrency industry by introducing an initiative to create a common regulatory framework for digital assets, CNBC reports.
The U.S. Securities and Exchange Commission (SEC) has announced that Acting Chairman Mark Oueda has launched a "cryptocurrency task force" that will focus on providing transparency for the $3.7 trillion cryptocurrency market. The initiative will be led by SEC Commissioner Hester Piers, known for her positive attitude towards cryptocurrencies, who has long called for the development of clear and flexible regulations in the field of digital assets.
In a statement accompanying the announcement, Pierce emphasized the importance of cooperation: "We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation".
The working group will focus on developing rules for cryptocurrency projects, including recommendations for registering tokens and coins.
This news was positively received by the cryptocurrency market: Bitcoin rose by 2.4% and exceeded $106,000. Industry leaders welcomed the change in tone in regulatory policy, which is markedly different from the Joe Biden administration's approach, known for its strict restrictions.
During Biden's presidency, then-SEC Chairman Gary Gensler was criticized for restraining cryptocurrency exchange-traded funds (ETFs), imposing strict accounting rules, and taking aggressive action against cryptocurrency companies. The lack of clear regulations has been a frequent cause of controversy.
The Cryptocurrency Working Group plans to organize public hearings and solicit opinions from various stakeholders, including investors, academics, and industry leaders. It also plans to collaborate with other federal agencies, such as the Commodity Futures Trading Commission (CFTC), to unify regulations.
The announcement is in line with Trump's pledges to support digital assets and promote blockchain innovation. On the eve of his inauguration, Trump confirmed his interest in cryptocurrencies by issuing the $TRUMP memecoin, and First Lady Melania Trump introduced her $MELANIA token. Both tokens initially experienced a sharp rise, but later their rates began to decline. However, many in the crypto industry have criticized Trump for his decision to launch his own memecoin, noting that it could harm both the president himself and cryptocurrency businesses seeking easier regulation and public recognition.