SEC Commissioner Mark Uyeda signaled a major shift in Washington’s approach to crypto regulation, moving away from enforcement-heavy tactics under the Biden administration toward a more collaborative and transparent framework.
Speaking to CNBC at the World Bank and IMF Spring Meetings in Washington, DC, Uyeda laid out the agency’s renewed vision, shaped under President Trump’s leadership, with a focus on constructive engagement and innovation.
In January, while serving as acting SEC chair, Uyeda launched a crypto task force to craft a clear and comprehensive set of regulations for digital assets.
SEC Aims to Craft Smart Rules Without Stifling Crypto Growth: Uyeda
He acknowledged that in recent years, the SEC had sent a strong message to crypto players that they were unwelcome in the US, citing numerous lawsuits and enforcement actions that, in his view, stifled innovation and pushed the industry offshore.
Now, the agency is working more closely with the White House and Treasury through joint task forces on crypto and AI. The SEC’s own task force has begun hosting public roundtables to gather industry input. One of these sessions, scheduled for Friday, will focus on crypto custody.
A key aim of the new initiative is to create a “principles-based” regulatory framework. Uyeda admitted that the SEC is late to the effort but said the agency is learning from other countries’ successes and failures. “We’re thinking about how we can use that knowledge to have the most effective set of rules that are cost-efficient, that protect users of crypto,” he said.
What Counts as a Security? SEC Reexamines Rules in Crypto Context
Among the thorniest issues is determining which crypto assets fall within the SEC’s jurisdiction.
Unlike regulators in other countries, the SEC can only oversee securities. Uyeda noted the need to define that boundary. The agency’s first public roundtable addressed the basic question of what constitutes a security under US law, particularly in light of the decades-old Howey Test.
The legal standard comes from a 1946 Supreme Court decision. It assesses whether an asset involves an investment of money in a common enterprise. It also considers if there is an expectation of profit based on the efforts of others. Applying this test to digital assets has been controversial. Courts and regulators have often disagreed on its interpretation.
Uyeda said the SEC has already clarified its stance on certain tokens. Meme coins are generally not considered securities. Stablecoins without interest features fall outside that category as well. The same applies to proof-of-work cryptocurrencies. However, he noted that this remains an evolving area. The agency is actively seeking public input to refine its approach.
Stablecoins Without Returns Not Securities, Uyeda Says
On stablecoins, Uyeda pointed to pending legislation in Congress and reaffirmed the SEC’s position. “A stablecoin that promises no type of return, no type of dividend or interest payment does not fall within that Howey framework,” he said.
Enforcement actions have not been ruled out. However, Uyeda’s comments give insight into the SEC’s new direction. The focus is on bringing clarity. The agency is working closely with other arms of government. It also aims to ensure that regulation does not compromise the US dollar’s role as the global reserve currency.
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