The SEC Crypto Task Force recently held a meeting 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. During the meeting, the task force staff reviewed a framework document that defines a crypto taxonomy and regulatory structure.
The document classifies various digital commodities, including Bitcoin (BTC), digital securities, digital currencies backed by fiat, digital tokens with defined utility, non-fungible tokens, and digital ABT assets linked to physical commodities. It also establishes rights and responsibilities for issuers, exchanges, and asset owners, emphasizing fair disclosure, transparent custody practices, and adherence to local laws. The framework proposes standardized disclosures, industry-led compliance processes, and limits on asset issuance and maintenance costs.
One of the highlights of the meeting was Michael Saylor’s presentation, which emphasized the potential benefits of 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.
Representatives from the Crypto Council for Innovation recommended clarifying the regulatory treatment of staking services, passive blockchain data platforms, and incentive-based rewards. They proposed issuing guidance or no-action relief to confirm that legitimate 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 council also recommended excluding platforms offering blockchain exploration tools and non-custodial Web3 marketplaces from the definitions of brokers, exchanges, or alternative trading systems when they provide only access or data display functions. Additionally, they 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. Other 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.
MITRE Corporation presented its research and development activities focusing on the crypto market and its regulatory implications. 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 shared 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 aims 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 concluded with a comprehensive review of proposals and research aimed at establishing a regulatory framework that supports innovation while ensuring market integrity.
