SEC crypto roundtable highlights Stark opposition to regulatory reform

The U.S. Securities and Exchange Commission (SEC) hosted its first crypto-focused roundtable on March 21, 2025, as part of its “Spring Sprint Toward Crypto Clarity” initiative.

The event brought together industry experts, former regulators, and legal professionals to discuss digital asset classification and regulatory approaches, revealing sharp divisions over how to balance innovation with investor protection.

Former SEC enforcement official John Reed Stark emerged as a vocal critic of regulatory reform, arguing that existing securities laws adequately address digital assets.

“The people buying crypto are not collectors. We all know that they are investors, and the mission of the SEC is to protect investors,” Stark stated, emphasising that crypto firms have repeatedly lost legal battles against the agency.

He dismissed calls for tailored regulations, asserting that the Securities Act of 1933 and 1934 should not be altered to accommodate cryptocurrencies.

Others, including crypto advocates and legal experts, pushed for clearer guidelines to differentiate decentralised assets from traditional securities.

Marcin Kazmiercak, co-founder of RedStone, noted that regulatory clarity could stabilise markets and boost institutional confidence, while Altan Tutar of MoreMarkets cautioned that the SEC’s withdrawal of its Ripple appeal set a narrow precedent rather than industry-wide clarity.

Panelists grappled with defining decentralisation as a metric for determining whether a token qualifies as a security.

Lee Reiners, a Duke University lecturer, acknowledged Bitcoin’s (CRYPTO:BTC) decentralised nature but questioned how to draw consistent lines for other assets.

“Drawing a line to define if something is sufficiently decentralised or an investment contract is impossible,” he said, citing a CFTC report that frames decentralisation as a spectrum.

The roundtable marked a departure from the SEC’s earlier enforcement-heavy approach under former Chair Gary Gensler.

“We’re moving on multiple tracks here” to address regulatory gaps, Acting Chairman Mark Uyeda emphasised, highlighting the agency’s intent to collaborate with industry stakeholders.

Commissioner Hester Peirce, head of the crypto task force, reiterated the SEC’s goal to “seek earnestly to find a workable framework” that balances innovation and oversight.