The Securities and Exchange Commission (SEC) Crypto Task Force recently held a meeting with industry leaders to discuss the regulation of crypto assets in the United States. Strategy executive chair Michael Saylor, representatives from the Crypto Council for Innovation, and the MITRE Corporation were among the participants in the meeting on Feb. 21.
During the meeting, the SEC staff reviewed a framework document that outlined a crypto taxonomy and a regulatory structure. The document classified various digital assets, including digital commodities like Bitcoin, digital securities tied to issuers, digital currencies backed by fiat, digital tokens with defined utility, non-fungible tokens, and digital ABT assets linked to physical commodities. It also proposed rights and responsibilities for issuers, exchanges, and asset owners, emphasizing fair disclosure, transparent custody practices, and adherence to local laws.
Michael Saylor’s presentation highlighted the potential benefits of faster and less costly asset issuance, broader market access, and a shift in capital markets that could strengthen the US dollar and reduce national debt through strategic measures such as a Bitcoin reserve.
The meeting also addressed the regulatory treatment of staking services, passive blockchain data platforms, and incentive-based rewards. The Crypto Council for Innovation recommended clarifying the regulatory status of these services to allow for more clarity in the industry. They proposed issuing guidance or no-action relief to confirm that staking services and related infrastructure providers are not subject to securities laws, which could enable crypto exchange-traded products to include staking activities in their filings.
Furthermore, the CCI recommended excluding platforms offering blockchain exploration tools and non-custodial Web3 marketplaces from the definitions of brokers, exchanges, or alternative trading systems when they provide only access or data display functions. They also suggested defining a non-security status for non-fungible tokens used primarily for non-financial applications like artistic works, collectibles, and virtual land.
MITRE Corporation presented research and development activities focusing on the crypto market and its regulatory implications. They outlined their work on stablecoin regulation, workflow tools for comment processing, and policy visualization systems. Additionally, they discussed digital asset threat-sharing platforms and a cyber threat framework for crypto.
Research findings shared at the meeting highlighted hidden centralization within decentralized finance, the need for stress testing in scenarios combining decentralized finance and traditional finance, and the implementation of circuit breakers at the smart contract level to mitigate risk propagation.
Overall, the meeting concluded with a comprehensive review of proposals and research aimed at establishing a regulatory framework that supports innovation while ensuring market integrity. The SEC is urged to build on industry momentum and enhance regulatory clarity and investor protection in the US.