SEC Crypto Task Force meets with Saylor, CCI, and MITRE to discuss regulation

The SEC Crypto Task Force met with Strategy executive chair Michael Saylor, representatives from the Crypto Council for Innovation and MITRE Corporation to discuss the best approach to regulating crypto assets in the US on Feb. 21.

According to memos shared by the SEC, the task force staff reviewed a framework document defining a crypto taxonomy and a regulatory structure during the meeting.

The document classifies digital commodities such as Bitcoin (BTC), digital securities tied to issuers, digital currencies backed by fiat, digital tokens with defined utility, non-fungible tokens for unique digital applications, and digital ABT assets linked to physical commodities.

It establishes rights and responsibilities for issuers, exchanges, and asset owners by calling for fair disclosure, transparent custody practices, and adherence to local laws. The framework also proposes standardized disclosures, industry-led compliance processes, and asset issuance and maintenance cost limits. 

Additionally, Saylor’s presentation highlighted the potential for faster and less costly asset issuance, broader market access, and a shift in capital markets that could strengthen the US dollar and reduce national debt through strategic measures such as a Bitcoin reserve.

Revisiting staking

Representatives from the Crypto Council for Innovation (CCI) recommended clarifying the regulatory treatment of staking services, passive blockchain data platforms, and incentive-based rewards. 

The meeting included 20 representatives from multiple crypto players, such as Coinbase, a16z, and Filecoin Foundation.

They proposed that guidance or no-action relief be issued to confirm that bona fide staking services and related infrastructure providers are not subject to securities laws. This change could allow crypto exchange-traded products to include staking activities in their filings. 

The CCI also recommended that platforms offering blockchain exploration tools and non-custodial Web3 marketplaces be excluded from the definitions of brokers, exchanges, or alternative trading systems when these platforms provide only access or data display functions. 

The recommendations further called for guidance to define a non-security status for non-fungible tokens used primarily as artistic works, collectibles, virtual land, or similar non-financial applications. 

Additional proposals included issuing no-action letters, pausing compliance-only enforcement actions, and modifying rulemaking processes to account for decentralization and on-chain trading. These measures aim to balance investor protection with support for industry innovation.

The council urged the SEC to build on prior decisions and industry momentum to enhance regulatory clarity and investor protection in the US.

Research-driven insights on stablecoins

MITRE Corporation presented research and development activities focusing on the crypto market and its regulatory implications. 

Operating as the US Treasury’s federally funded research and development center, the firm outlined its work on a logic-based approach to stablecoin regulation, developing workflow tools to support comment processing and using policy visualization systems to identify regulatory dependencies. 

MITRE also detailed its digital asset threat-sharing platforms and a cyber threat framework for crypto. 

Research findings discussed at the meeting revealed hidden centralization within decentralized finance, stressed the need for bank stress testing in scenarios coupling decentralized finance (DeFi) and traditional finance, and suggested implementing circuit breakers at the smart contract level to mitigate risk propagation.

MITRE’s technical work is designed to support SEC rulemaking by providing data-driven insights and innovative tools to develop a regulatory framework capable of addressing evolving challenges in the digital asset ecosystem.

The meeting concludes with a comprehensive review of proposals and research aimed at establishing a regulatory framework that supports innovation while ensuring market integrity.

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