The US Securities and Exchange Commission (SEC) hosted its first-ever crypto roundtable, bringing together critics and proponents of digital assets to discuss the commission’s role in regulating cryptocurrencies. The event highlighted the growing debate over how to determine whether a crypto asset is a security.
President Donald Trump’s election and subsequent resignation of former SEC Chairman Gary Gensler sparked a shakeup at the agency, leading to the creation of a new crypto task force. The task force organized the roundtable discussions, which aimed to explore some of crypto’s most contentious issues.
A panel of eleven legal experts attended the event, with some arguing that almost all cryptocurrencies fall under the investment contract bucket. John Reed Stark, an 18-year veteran of the SEC’s Enforcement Division, emphasized the need for regulation, citing death threats he received after discussing crypto’s regulatory status. Benjamin Schiffrin, director of securities policy at Better Markets, agreed, pointing out that large brokers often offer cryptocurrency products alongside traditional securities.
However, not all experts shared this view. Some argued that the SEC should exercise “regulatory humility,” recognizing the agency’s limitations in regulating digital assets. Coy Garrison and Rodrigo Seira discussed the importance of considering multiple regulatory bodies, including the CFTC and Congress.
Teresa Goody Guillen, a partner at BakerHostetler, took a contrarian approach, suggesting that the Howey Test may not be the best tool for determining crypto asset regulation. She argued that distributed ledger technology represents a new business form and way of allocating resources, which cannot be fully captured by traditional regulatory frameworks.
The SEC’s role in regulating cryptocurrencies is likely to remain contentious, with different perspectives on how to balance innovation and investor protection. The agency’s response to this challenge will have significant implications for the crypto industry and its future growth.
Source: https://news.bitcoin.com/sparks-fly-at-first-ever-sec-crypto-roundtable