Bitcoin and crypto market set for rally as acting SEC Chair Mark Uyeda launches crypto task force

• SEC acting chairman Mark Uyeda launched a crypto task force to provide a comprehensive regulatory framework for digital assets.
• Pro-crypto Commissioner Hester Peirce has been assigned to head the new unit.
• The crypto market remained fairly stable as Bitcoin consolidated below $110,000. 

Bitcoin (BTC) and the crypto market saw a slight uptick following Securities & Exchange Commission (SEC) acting chairman Mark Uyeda’s announcement of the creation of a crypto task force on Tuesday, led by Commissioner Hester Peirce, aiming to guide the agency toward a more practical regulatory framework for digital assets.

Hester Peirce set to lead new crypto task force launched by SEC acting chairman Mark Uyeda

Acting SEC Chair Mark Uyeda has taken a first step towards a clearer regulatory process for the crypto industry following the launch of a crypto task force.

According to a press release from the SEC, the new initiative is geared towards developing a comprehensive framework for digital assets. SEC Chair Uyeda aims to use this to address the agency's previous "regulation by enforcement" approach.

"The Task Force will collaborate with Commission staff and the public to set the SEC on a sensible regulatory path that respects the bounds of the law," the SEC stated in its press release.

Pro-crypto Commissioner Hester Peirce will lead the task force and work with commissioners Richard Gabbert and Taylor Asher to set the agency on a "sensible regulatory path."

The unit will also collaborate with federal agencies such as the Commodity Futures Trading Commission (CFTC) —under the watch of new acting chairman Caroline Pham— and will function within the statutory frame of Congress.

Additionally, Commissioner Peirce stated that contributions from the public are also highly welcome, as the unit aims for a transparent regulatory environment for investors.

"We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation," Commissioner Peirce stated.

The new initiative is part of the acting SEC Chair's commitment to fostering a proper regulatory environment for the crypto industry. 

Following Donald Trump's inauguration on Monday, Mark Uyeda was announced as the Commission's acting chairman.

Uyeda shared his desire to work with the new president to create a better regulatory outlook for crypto to repair the damages caused by the previous administration. He replaced former SEC chairman Gary Gensler, who retired from the agency on the day of Trump's inauguration into office.

Meanwhile, Bitcoin and the wider crypto market have remained fairly calm post Trump inauguration. If the crypto task force turns out successful, it could boost investors’ expectation and appeal for cryptocurrencies in the long term.