SEC, Seeking transition in cryptocurrency regulation...Discussion with pro-Trump companies

The Cryptocurrency Task Force of the U.S. Securities and Exchange Commission (SEC) is continuing discussions to establish a new regulatory framework. On the 24th, the SEC exchanged opinions at a meeting with the digital asset company Ondo Finance and the law firm Davis Polk & Wardwell, on the topic of issuance and sales plans for tokenization and wrapping structures of listed securities in the U.S.

This meeting, part of the task force led by Commissioner Hester Peirce, was held as the SEC expands its communication with the cryptocurrency industry. Ondo Finance reportedly highlighted requirements for registering tokenized securities, issues of compliance with financial laws, and the possibility of introducing a regulatory sandbox in the meeting. The content of the meeting has been officially announced, but Ondo Finance did not respond to media requests for comment.

Ondo Finance has a history of donating $1 million to President Donald Trump's inauguration fund and recently stated that it is promoting the launch of a cryptocurrency-based ETF on behalf of Trump's social media platform 'Truth Social.' The law firm Davis Polk & Wardwell is also handling matters related to Truth Social.

Meanwhile, the SEC plans to hold a roundtable meeting on the 25th to gather opinions on digital asset custody, with key corporate representatives from Kraken, Anchorage Digital Bank, WisdomTree, etc., in attendance. This coincides with the rapidly increasing demand for digital asset custody from financial institutions in the U.S. following the approval of cryptocurrency ETFs in 2024.

The task force's activities mark the first official move since the appointment of former Commissioner Paul Atkins as the SEC Chairman on the 21st. Commissioner Atkins, appointed by President Trump, has not yet introduced a definitive policy direction but is expanding contacts with the industry. The SEC plans to continue actions related to fraudulent acts but has decided to suspend investigations or lawsuits against some companies connected to the Trump camp, such as Ripple, Coinbase, and Kraken.

While it is unclear what regulatory direction the SEC will shift to under the new leadership, the current trend of gradually expanding contact with the digital asset industry is raising expectations for possible regulatory relaxation.