## SEC Developments in Digital Asset Regulation: A 2025 Recap & 2026 Outlook

This past year marked a notable shift in the ongoing efforts to develop a regulatory framework for digital assets in the U.S. markets,driven by coordinated actions from the Securities and Exchange Commission (SEC) and the new presidential administration. Under the leadership of SEC Chairman Atkins and in alignment with the president’s digital-asset-friendly agenda, the SEC advanced certain guidance, and other initiatives in 2025 to provide clarity in the marketplace and develop a regulatory framework that promotes innovation and facilitates the trading and custody of digital assets.

What follows is a summary of these key statements and initiatives that we expect will shape the SEC’s regulatory landscape for digital assets in 2026 and beyond.### Launch of SEC Crypto Task Force

On January 21, 2025, SEC Acting Chairman Uyeda launched the Crypto Task Force “dedicated to developing a comprehensive and clear regulatory framework for crypto assets.”

### Rescission of Accounting guidance on Crypto

On January 23, 2025, the SEC issued Staff accounting Bulletin No. 122 rescinding the interpretive guidance provided in Topic 5.FF, Accounting for obligations to Safeguard crypto-Assets an Entity Holds for its Platform Users, which required crypto assets to be recorded as liabilities on crypto holders’ balance sheets.

### Crypto Task Force Priorities

On February 4, 2025, Commissioner Hester Peirce, leader of the Crypto Task Force, published a statement titled “The Journey Begins” that set forth certain priorities of the Crypto Task Force. These priorities include determining the status of digital assets under securities laws,identifying the scope of the SEC’s jurisdiction on regulation of digital assets and providing prospective and retroactive relief for offerings of certain digital assets.

### Cyber and Emerging Technologies Unit for Retail Investor Protection

On February 20, 2025, the SEC announced the replacement of the Crypto Asset Cyber Unit with the cyber and Emerging Technologies Unit (CETU), which is focused on retail investor protection, combating cyber-related misconduct, and judiciously deploying enforcement resources.

### Staff statement on Meme Coins

On February 27, 2025, the SEC’s Division of Corporation Finance issued a Staff Statement on meme coins, or digital assets inspired by internet memes, characters, current events, or trends.The statement stated that trading of the types of meme coins described does not constitute an offer or sale of securities under federal securities laws and does not require registration or exemption from registration under securities law.

### Dismissal of Coinbase Enforcement Action

On February 27, 2025, the SEC announced the dismissal of a civil enforcement action against Coinbase, due to the Crypto Task Force’s efforts to rectify the SEC’s approach on digital assets by “developing crypto policy in a more clear manner” rather than expressing the SEC’s views on crypto through enforcement actions.

### Statement on Proof-of-Work Mining Activities

On March 20, 2025, the SEC’s Division of Corporation Finance issued a Staff Statement on certa“`html

The U.S. Securities and Exchange Commission (SEC) has initiated “Project Crypto Roundtables,” a series of meetings designed to gather insights from stakeholders in the digital asset space. This move follows President Biden’s Executive Order on Ensuring Responsible Growth of Digital Assets, and signals a proactive approach by the SEC to navigate the evolving regulatory landscape of cryptocurrencies. Cozen reports that the SEC aims to better understand the challenges and opportunities presented by crypto assets.

Background and Objectives

President Biden’s executive Order, issued in March 2022, directed various federal agencies, including the SEC, to study and develop recommendations for regulating digital assets. The executive Order outlined six key priorities: consumer protection, financial stability, illicit finance, U.S. competitiveness, financial inclusion, and responsible innovation. Project Crypto Roundtables are a direct response to this directive.

The SEC’s primary objective with these roundtables is to inform its regulatory approach to digital assets. specifically, the SEC is seeking input on a wide range of topics, including:

• The application of existing securities laws to crypto assets.
• The potential need for new regulations.
• The risks and benefits of various crypto technologies, such as decentralized finance (DeFi) and non-fungible tokens (NFTs).
• The impact of crypto assets on market integrity and investor protection.

Roundtable Participants and Focus areas

The roundtables are bringing together a diverse group of participants, including:

• Crypto exchanges
• Broker-dealers
• Investment advisors
• Custodians
• Technology providers
• Legal experts
• Academic researchers

The SEC has structured the roundtables around specific themes. Initial roundtables focused on:

Crypto Asset Transfers and Custody

This roundtable examined the challenges associated with transferring and safeguarding crypto assets, including issues related to custody, security, and operational resilience. SEC Commissioner Hester Peirce highlighted the importance of understanding the unique risks associated with crypto custody.

Crypto Asset Market Structure

This roundtable explored the structure of crypto asset markets, including trading platforms, market makers, and clearinghouses. Discussions centered on issues such as market manipulation, price discovery, and regulatory oversight.

Federal-State Coordination

Recognizing the overlapping regulatory jurisdictions, a roundtable was dedicated to fostering better coordination between federal and state regulators. This aims to create a more consistent and efficient regulatory framework for the crypto industry.

Implications for the crypto Industry

Project Crypto Roundtables represent a significant step towards greater regulatory clarity in the crypto space. While the SEC has previously taken enforcement actions against crypto companies, this initiative demonstrates a willingness to engage in a more collaborative dialogue.

The insights gathered from these roundtables are expected to shape the SEC’s future rulemaking and enforcement priorities. Industry participants are closely watching the proceedings, hoping for a regulatory framework that fosters innovation while protecting investors. The SEC’s approach will likely influence the long-term growth and adoption of crypto assets in the United states.

Key Takeaways

• The SEC is actively seeking input from industry stakeholders on how to regulate crypto assets.
• project Crypto Roundtables are a direct response to President Biden’s Executive Order on digital assets.
• The SEC is focusing on key areas such as custody, market structure, and federal-state coordination.
• The outcome of these roundtables will likely have a significant impact on the future of the crypto industry.

Publication Date: 2026/01/