SEC crypto task force holds $1M Trump donor meeting on regulation

The US Securities and Exchange Commission (SEC) crypto task force, led by Hester Peirce, met on April 24 with representatives from Ondo Finance and law firm Davis Polk and Wardwell to discuss regulatory issues surrounding tokenised securities.

Ondo Finance, which donated $1 million to Donald Trump’s inauguration fund, planned to address registration requirements for wrapped, tokenised versions of publicly traded US securities, compliance with financial laws, and the possibility of launching a regulatory sandbox.

Davis Polk and Wardwell, recently appointed to represent Trump’s social media company Truth Social in launching crypto-linked exchange-traded funds (ETFs), also participated in the meeting.

The SEC task force’s outreach continues following the departure of former chair Gary Gensler.

Paul Atkins, a former commissioner and Trump appointee, was sworn in as SEC chair on April 21 but has yet to take public action on his proposed crypto agenda.

On April 25, the crypto task force planned a roundtable focused on custody issues, including representatives from Kraken, Anchorage Digital Bank, and WisdomTree.

The approval of crypto ETFs in 2024 has increased demand for digital asset custody services in the US.

It remains unclear how aggressively the SEC will pursue crypto enforcement under Atkins.

The commission has stated it will continue to address fraudulent activity but recently dropped a complaint against Hex founder Richard Heart.

The SEC has also announced it will cease investigations or lawsuits against firms like Ripple (CRYPTO:XRP), Coinbase, and Kraken.

Notably, all three exchanges have ties to Trump’s 2024 campaign or inauguration fund through donations or executive support.