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The American Securities and Exchange Commission (SEC) hosted its first Crypto Roundtable on Friday, in which critics and supporters of digital assets brought together for a warm debate whether Cryptocurrency should be classified as securities. Discussion of key legal experts and SEC officials marked a significant moment in the ongoing fight on crypto regulation.
A New Era for Crypto Regulation
Roundness was against the background of a major political change. The landslide victory of former President Donald Trump in November set the stage for the country’s first crypto-friendly administration. One of the promises of Trump’s campaign was to replace Gary Gensler, president of SEC, the outspoken critic of Crypto. Seeing the change in power, Gensler resigned in January and since then infection to teach financial technology in MIT.
After Gensler’s departure, acting SEC President Mark T. Uyeda did not waste any time, launched a new Crypto Task Force to revaluate regulatory approaches. Round Table discussion was the direct result of this initiative, the first session focused on the fundamental question with the first session. Does a crypto property create a security?
A Divided Panel
The event began with Uyeda and SEC Commissioner Hester Peirce and Caroline Crenshaw comment. Uyeda and Peirce hit a more positive tone, indicating an openness for regulatory reforms, while Crenshaw issued a warning about the risks of changing securities laws to adjust the crypto.
“A modification of the law to facilitate the success of a chosen product category is risk -filled,” Crenshaw warned. “We can’t make holes in the foundation without expecting the walls.”
The subsequent debate was intense. Former SEC Enforcement Division official John Reed Stark took a tough stance, stating that most of the crypto property are securities and should be regulated accordingly. He even claimed to receive death threats for his views.
Stark said, “People who buy crypto are not collector; they are investors.” “And how will I know? Because every time I speak about it, I get threatened.”
Benjamin Schifrin, Director of Securities Policy at Better Markets supported the approach, stated that financial institutions classify crypto with stock, bonds and mutual funds. Lee Reiner’s, a lecturer at Duke Law, further emphasized that the courts have consistently implemented the Howey Test for Crypto, concluding that most tokens are investment contracts.
Supporter-Crypto Defense
Despite the outbreak, Pro-Crypto lawyers pushed back. Coy Garrison (Steptoe LLP) and Rodrigo and Rodrigo Sera (Cooley LLP) argued for regulatory humility, emphasizing that SEC is not the only right to digital assets. He praised the recent guidance of the agency on Meme coins and mining activities, calling it a step towards very important clarity.
Collins Belton (Brookwood PC) warned that labeling digital assets as securities could be unexpected results for the industry. Meanwhile, Teresa Goody Guillen (Baker Hostetler) took the boldest stance, questioning whether the Howey Test is even the right framework to regulate crypto.
Future of Crypto Regulation
The roundtable made one thing clear: the debate over crypto regulation is far from settled. With a new administration in place, the SEC’s stance may shift, but tensions remain high. As the industry waits for further guidance, the battle over crypto’s legal status continues—perhaps shaping the future of financial markets for years to come.