The post SEC Crypto Task Force Debates New Crypto Rules, Stark Opposes Reform appeared first on Coinpedia Fintech News
The SEC’s crypto task force held its first public meeting on Friday, bringing together experts to discuss how securities laws apply to digital assets, as the Trump administration pushes to reshape cryptocurrency regulations.
The participants included John Reed Stark, former SEC official, Miles Jennings from Andreessen Horowitz, and ex-SEC Commissioner Troy Paredes. The task force is focused on creating rules and guidance for the crypto industry.
Mixed Opinions Over Crypto Rules
The task force discussed whether crypto tokens should have their own set of rules, separate from how the SEC handles stocks. Jennings suggested the SEC should be “technology-neutral” and treat systems like Ethereum differently from owning stock in Apple.
Some, including SEC Commissioner Caroline Crenshaw, worried that giving crypto its own rules could weaken regulations and let digital assets avoid stricter oversight.
John Reed Opposes Changes In Exisiting Rules
John Reed Stark, former director of the SEC’s Office of Internet Enforcement, opposed changes to regulations at the first SEC crypto roundtable. He argued that the Securities Act of 1933 and 1934 should remain unchanged to cover digital assets, emphasizing that they should still be classified as securities under existing laws. Stark emphasized that Crypto buyers aren’t collectors, they’re investors, and the SEC’s mission is to protect those investors.
“The volume of case law has developed so quickly because of all these crypto firms. They went for this sort of delay, delay, delay, idea, and they hired the best law firms in the world, and these law firms all fought the SEC with incredible briefs,” he added.
Stark’s Views Face Strong Criticism
Stark argued that he had thoroughly reviewed the crypto-related cases and believes that they mostly lost. He also stated that he doesn’t see anything particularly innovative about digital assets compared to earlier technological advancements, like the launch of the iPhone.
In February 2024, John Reed Stark criticized a sponsorship deal between the Dallas Mavericks and crypto firm Voyager, comparing it to partnering with a “heroin manufacturer.” He argued that cryptocurrency should follow existing laws, rather than adapting the law to fit digital assets. Stark’s views have been strongly criticized, with Mark Cuban calling it “crypto derangement syndrome.”
