The U.S. Securities and Exchange Commission is ushering in a new chapter of crypto regulation—one defined less by punitive enforcement and more by proactive engagement and flexible frameworks. During the second session of its Crypto Task Force roundtable series, held Friday, the agency explored temporary regulatory relief for crypto firms as it works toward long-term solutions.
Titled “Between a Block and a Hard Place: Tailoring Regulation for Crypto Trading,” the session brought together stakeholders from across the digital asset and financial sectors. Representatives from Uniswap Labs, Coinbase, FalconX, the New York Stock Exchange, and consumer advocacy groups weighed in on how best to regulate digital trading platforms without hindering innovation.
Acting SEC Chair Mark Uyeda proposed a potentially groundbreaking idea: temporary, conditional exemptions for both registered and unregistered crypto entities. These exemptions, he explained, would provide regulatory breathing room while the agency builds a bespoke framework for blockchain-based markets.
“While the Commission works to develop a long-term solution to address these issues, a time-limited, conditional exemptive relief framework for registrants and non-registrants could allow for greater innovation with blockchain technology within the United States in the near term,” Uyeda said.
The shift in tone—more collaborative, less combative—contrasts sharply with the agency’s approach under former Chair Gary Gensler, whose tenure was marked by sweeping lawsuits and an expansive interpretation of securities law. Uyeda’s remarks signal a growing acknowledgment that one-size-fits-all rules designed for traditional finance may not work in the crypto space.
From Enforcement to Consultation: A Post-Gensler Shift
Friday’s roundtable reflects a broader recalibration underway at the SEC. Since the confirmation of pro-crypto SEC Chair Paul Atkins, the agency has been actively dialing back Gensler-era legal actions and embracing a more inclusive, consultative regulatory style. Under the leadership of Commissioner Hester Peirce—now heading the agency’s internal crypto task force—the focus has shifted toward establishing clear rules of the road through dialogue rather than litigation.
Still, not all views within the Commission are aligned. Commissioner Caroline Crenshaw, currently the lone Democrat on the panel, voiced concern about the structure of many crypto exchanges, which often bundle brokerage, custody, and clearing functions into a single platform. Crenshaw argued that, unlike in traditional finance, where such roles are separated to reduce risk, crypto’s vertical integration could lead to systemic failures and investor harm.
“In some instances, we have seen some of those risks materialize in a way that has caused significant market disruption and harm to investors,” Crenshaw warned during the discussion.
Jurisdictional Tensions and the Future of Oversight
Beyond the regulatory flexibility debate, the roundtable highlighted a longstanding question: who gets to regulate what?
One of the more contentious points was whether decentralized finance (DeFi) protocols and peer-to-peer platforms should fall under the SEC’s authority at all. Katherine Minarik, Chief Legal Officer at Uniswap Labs, pushed back on that idea, arguing that many decentralized transactions don’t carry the same risks that justify oversight in traditional brokered environments.
“Many of those risks substantially or entirely disappear when, for example, a participant in a transaction retains custody or control of their own assets,” Minarik told the panel.
The jurisdictional gray area extends beyond the SEC. Dave Lauer, co-founder of Urvin Finance and We the Investors, underscored the ongoing turf war between the SEC and the Commodity Futures Trading Commission (CFTC). He warned that the lack of a unified regulatory roadmap continues to confuse both builders and investors, stifling market growth and innovation.
More roundtable sessions are expected in the coming months, with future topics to include custody practices, stablecoin frameworks, tokenization models, and the legal contours of DeFi—each aimed at fostering mutual understanding between regulators and industry leaders.
Quick Facts:
- The SEC’s Crypto Task Force held its second roundtable on April 11, 2025, focused on crypto trading regulation.
- Acting Chair Mark Uyeda proposed temporary, conditional exemptions for crypto firms.
- Commissioner Hester Peirce leads the task force, which is steering the agency toward a more collaborative posture.
- Future roundtables will cover crypto custody, tokenization, stablecoins, and DeFi.
