The Trump Era Approach to Crypto Assets and the Blockchain Industry

What are the highest probabilities for the SEC to change and clarify rules and regulations?

Key Points

It seems likely that the SEC will propose new rules and guidance for crypto assets, focusing on clear classifications and investor protection.

Research suggests the SEC’s Crypto Task Force will prioritize safe harbors, tailored registrations, and innovation sandboxes.

The evidence leans toward a shift from enforcement to a more collaborative regulatory approach, though controversy remains over crypto’s legal status.

The SEC is likely to take a new approach to regulating crypto assets and the blockchain industry, focusing on creating clear rules and fostering innovation while protecting investors. Here’s what we can expect:

Background

The SEC has formed a Crypto Task Force, led by Acting Chairman Mark T. Uyeda and Commissioner Hester Peirce, to develop a comprehensive regulatory framework. This shift comes after years of relying heavily on enforcement actions, which has been controversial in the crypto industry.

Expected Changes

Clear Classifications: The SEC will likely clarify which crypto assets are securities, using a new taxonomy to distinguish them from non-securities. This could help reduce legal uncertainty for projects.

Safe Harbors and Innovation: They may propose a “safe harbor” for crypto projects during development, allowing them to operate with tailored disclosures before full registration. An innovation sandbox could also be created for small-scale projects, potentially including cross-border initiatives.

Tailored Registrations: Expect new registration options for token offerings, possibly using existing frameworks like Regulation A, to make compliance easier for crypto companies.

Trading and Custody Rules: New rules for trading platforms and custody arrangements are likely, addressing issues like Miner Extractable Value (MEV) in trading and differentiating between native and tokenized assets for custody.

Shift in Approach: The evidence suggests a move away from aggressive enforcement toward collaboration, though this is debated, with some arguing it could weaken investor protections.

An unexpected detail is the focus on tokenized securities, where the SEC might amend rules for transfer agents to facilitate blockchain-based transactions, potentially speeding up settlements but raising new risks.

For more details, see the SEC’s Crypto Task Force page (Crypto Task Force) and Commissioner Peirce’s statement (Statement).

Survey Note: Detailed Insights on the SEC’s New Approach to Crypto Assets and the Blockchain Industry

This note provides a comprehensive overview of the highest probability of what’s next in the SEC’s new approach to crypto assets and the blockchain industry, based on recent developments as of March 27, 2025. It expands on the direct answer by including all relevant details uncovered through research, organized for clarity and depth, suitable for professional or detailed inquiries.

Overview of the SEC’s Current Stance

The Securities and Exchange Commission (SEC) has historically approached crypto assets through enforcement actions, targeting fraudulent offerings, unregistered exchanges, and platforms violating securities laws. This approach, led by former Chair Gary Gensler, resulted in numerous lawsuits against major players like Coinbase and Ripple, often criticized for lacking clear regulatory guidance. However, with the formation of the Crypto Task Force on January 21, 2025, under Acting Chairman Mark T. Uyeda and led by Commissioner Hester Peirce, there is a clear shift toward a more regulatory and collaborative framework. This task force aims to develop a comprehensive and clear regulatory framework, moving away from the “regulation by enforcement” era, as highlighted in recent statements (Crypto Task Force).

Key Developments Leading to the New Approach

The Crypto Task Force was announced as part of President Donald Trump’s administration’s promise to overhaul crypto policy, signaling a pro-crypto stance. Commissioner Peirce, known as “Crypto Mom” for her support of innovation, has emphasized engaging with the public to shape regulations. On February 21, 2025, Peirce issued a statement titled “There Must Be Some Way Out of Here,” inviting public input on various regulatory challenges (Statement). This follows earlier enforcement actions, such as those by the Crypto Assets and Cyber Unit, which brought over 80 actions since 2017, recovering more than $2 billion (Crypto Unit). The task force’s formation coincides with scaling back the enforcement unit, with some staff reassigned, indicating a policy shift (NY Times).

Detailed Areas of Focus and Predicted Next Steps

The task force has outlined several areas for potential regulatory changes, based on public statements and meeting logs. Below is a table summarizing the key categories, recommendations, questions posed, and relevant URLs for further reference:

Category	Recommendations/Details	Questions Posed	URLs for Further Reference
Regulatory Taxonomy	Improve taxonomy for crypto assets (securities, investment contracts, tokenized securities, non-securities).	What type of regulatory taxonomy for security status? Should Commission address other financial instruments?	–
Safe Harbor (Rule 195)	Consider non-exclusive safe harbor for crypto asset offers during blockchain development, with tailored disclosures. Proposed by Commissioner Hester Peirce on April 13, 2021. Includes “Safe Harbor X” iteration.	Should Commission consider Rule 195 or Safe Harbor X? Retroactive availability? Disclosure requirements? Decentralization thresholds?	Safe Harbor Proposal , SafeHarbor-X
Public Offerings	Tailored registration regimes for tokens, possibly using Regulation A, to address cost and feasibility concerns.	Could disclosure guidance or new forms help? Tailored disclosure for crypto assets? Revise Regulation A?	–
Trading	New entity registration status for platforms trading crypto securities, updates for side-by-side trading, addressing MEV, and using open-source data for monitoring.	Create new registration for trading platforms? Update rules for interoperability? Address MEV? Use open-source tools?	–
Custody	Amend rules or provide guidance for custodying crypto assets, differentiate between native and tokenized assets, and address auditing standards.	Amend rules for custody arrangements? Differentiate custody risks? Propose auditing requirements?	–
Sandbox	Propose micro-innovation sandbox for small-scale projects, including tokenization, proposed by Hester Peirce on May 29, 2024, potentially cross-border.	Would Sandbox foster innovation? Address cross-border challenges?	Sandbox Proposal
Tokenized Securities	Facilitate blockchain-based transactions, consider amendments for transfer agents, and address atomic settlement benefits/risks.	Address legal impediments for tokenized securities? Amend transfer agent rules? Encourage atomic settlement?	–
Crypto Lending/ETPs	Approach diverse crypto lending concepts, consider ETP listing without SSAs based on spot market size/liquidity.	How to approach crypto lending without stifling opportunities? Address ETP listing without SSAs?	–

These recommendations are based on the task force’s engagement with the public, including roundtables held on March 21, 2025, with experts like John Reed Stark and Miles Jennings, focusing on how securities laws apply to digital assets (Reuters Roundtable). The task force welcomes input via written submissions (Submit Input) and meeting requests (Meeting Request), with timely responses preferred to influence options.

Predicted Next Steps and Timeline

Given the task force’s early stage, the highest probability for what’s next includes:

Concept Releases or Requests for Comment (RFC): The SEC is likely to issue concept releases or RFCs to gather public input on specific aspects, such as safe harbors or custody rules, within the next few months, given the active engagement as of March 2025.

Issuance of No-Action Letters or Guidance: To provide immediate clarity, expect no-action letters or guidance on areas like token offerings or trading platforms, possibly by mid-2025, based on the task force’s focus on practical solutions.

Rulemaking Processes: For more substantial changes, rulemaking processes may begin later in 2025, particularly for registration regimes and sandbox proposals, given the need for public comment periods and legal review.

Shift in Enforcement Approach: The evidence leans toward a reduced focus on enforcement, with cases like the dismissal of charges against Coinbase on February 27, 2025, indicating this shift (Coinbase Dismissal). However, enforcement will continue for fraud, as reiterated by Peirce.

An unexpected detail is the focus on tokenized securities, where the SEC might amend transfer agent rules to facilitate blockchain-based transactions, potentially speeding up settlements but raising new risks like atomic settlement challenges, which could impact market stability.

Controversy and Stakeholder Reactions

The new approach is controversial, with the crypto industry welcoming the shift, as seen in statements from Kraken’s Jonathan Jachym (Reuters), while investor protection advocates worry it could weaken oversight. The legal status of crypto assets remains debated, with some arguing tokens are commodities, not securities, complicating the taxonomy efforts.

Conclusion

In summary, the SEC’s new approach to crypto assets and the blockchain industry is expected to be more collaborative and regulatory, focusing on clear classifications, safe harbors, tailored registrations, and innovation sandboxes. The Crypto Task Force’s work will likely lead to a series of regulatory actions and guidance, with significant developments expected throughout 2025, balancing innovation and investor protection.

Key Citations