Crypto may soon face more scrutiny if the U.S. Securities and Exchange Commission (SEC) has anything to say about it.
SEC’s new leadership said on Tuesday that it had created a task force to develop a regulatory framework for crypto assets, in the first major move by President Donald Trump’s new administration to overhaul crypto policy.
Trump has generally been skeptical about cryptocurrencies, expressing concerns over their volatility, security risks, and potential use in illegal activities like money laundering. He has criticized Bitcoin and similar digital assets, warning about their speculative nature.
However, right at the outset of his inauguration Trump introduced two meme-based cryptocurrencies, $TRUMP and $MELANIA, which quickly amassed a combined market value nearing $10 billion.
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Despite initial surges, both tokens experienced significant volatility, with $TRUMP’s value dropping by approximately 45% shortly after its peak. Critics argue that these ventures may blur the lines between political and business interests, raising ethical concerns within the cryptocurrency community.
Additionally, the concentration of token ownership among Trump-affiliated entities has led to apprehensions about potential market manipulation.
During his 2016 presidency, Trump showed interest in blockchain technology, recognizing its potential for applications beyond cryptocurrencies. While his administration did not enact specific cryptocurrency regulations, it took a cautious approach, emphasizing the need for consumer protection and financial stability.
Recently, Trump reportedly campaigned on promises to be a “crypto president,” and has pledged to reverse an industry crackdown under former President Joe Biden’s SEC, which sued multiple crypto companies, including Coinbase (COIN.O) and Kraken, alleging they had flouted its rules.
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Tuesday’s move by Republican Commissioner Mark Uyeda, whom Trump named acting SEC chair on Monday, along with fellow Republican Commissioner Hester Peirce.
Reportedly this marks the first major policy success for the crypto industry under the new administration. Which is surprising, as a special task force does usually mean more scrutiny and regulation, but crypto companies are reportedly welcoming this news with open arms. Only time will tell what the future holds for Trump’s intentions.