SEC's Crypto Task Force Redefines Rules for Digital Asset Projects
The US Securities and Exchange Commission (SEC) is refining its approach to crypto regulation. A dedicated task force of around 15 staffers is working on clearer pathways for digital asset projects. Their efforts include reviewing tokenized securities and exploring exemptions for trading on automated platforms.
The moves come as lawmakers push forward with the Clarity Act, a bill aimed at defining regulatory boundaries for crypto fundraising and decentralisation. The SEC’s Crypto Task Force is examining how the Howey Test applies to digital tokens. Under this framework, a token may no longer be classed as a security once a project reaches full decentralisation—defined as the point where 'essential managerial efforts' cease.
At the same time, the regulator is assessing different types of tokenised assets. Some tokens mimic traditional stocks, carrying voting or dividend rights, while others simply hold value without attached claims. The SEC is also considering an innovation exemption that would allow tokenised stocks to trade on automated market makers (AMMs) without full exchange registration.
In a separate clarification, the SEC stated that crypto wallets transmitting user decisions to the blockchain may not always require broker-dealer registration. This guidance aims to reduce unnecessary compliance burdens for certain wallet providers.
The SEC’s approach mirrors elements of Commissioner Hester Peirce’s proposed Safe Harbor rule. Both frameworks seek to give crypto projects a structured route for fundraising and eventual decentralisation. The regulator is coordinating with Congress, the Commodity Futures Trading Commission (CFTC), and other agencies to align market rules and offer industry flexibility.
Meanwhile, the Clarity Act continues to progress through Congress. The bill, backed by multiple lawmakers, aims to establish clearer legal definitions for crypto assets and their issuers. The SEC’s ongoing work could reshape how crypto projects raise funds and operate in the US. By refining the Howey Test’s application and exploring exemptions, the regulator is attempting to balance investor protection with industry growth. The outcome will depend on further collaboration with Congress and other financial watchdogs.
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