tl;dr
The SEC Crypto Task Force met with Michael Saylor, Crypto Council for Innovation, and MITRE Corporation to discuss regulating crypto assets in the US. They reviewed a framework document defining crypto taxonomy, regulatory structure, and proposals for disclosure, compliance processes, and asset issu...
The SEC Crypto Task Force recently met with Strategy executive chair Michael Saylor, representatives from the Crypto Council for Innovation, and MITRE Corporation to discuss the regulation of crypto assets in the US. This comprehensive meeting involved reviewing a framework document that defines a crypto taxonomy and regulatory structure, classifying various digital commodities and proposing fair disclosure, transparent custody practices, and adherence to local laws for issuers, exchanges, and asset owners.
Michael Saylor's presentation highlighted the potential benefits of faster and less costly asset issuance, broader market access, and strategic measures such as a Bitcoin reserve to strengthen the US dollar and reduce national debt. The Crypto Council for Innovation recommended clarifying the regulatory treatment of staking services, passive blockchain data platforms, and incentive-based rewards. They proposed guidance to confirm that bona fide staking services and infrastructure providers are not subject to securities laws, as well as excluding certain platforms from the definitions of brokers, exchanges, or alternative trading systems. Additionally, they suggested defining a non-security status for non-fungible tokens primarily used as artistic works, collectibles, virtual land, or similar non-financial applications.
MITRE Corporation presented research and development activities focusing on the crypto market and its regulatory implications, including a logic-based approach to stablecoin regulation, workflow tools to support comment processing, and a cyber threat framework for crypto. They also highlighted the need for bank stress testing in scenarios involving decentralized finance and traditional finance, as well as the potential implementation of circuit breakers at the smart contract level to mitigate risk propagation.
Overall, the meeting aimed to establish a regulatory framework supporting innovation while ensuring market integrity, with a focus on enhancing regulatory clarity and investor protection in the US.