BlackRock Meets With US SEC Crypto Task Force, Here’s All

American investment giant BlackRock Inc. met with the Crypto Task Force, a new unit of the US Securities and Exchange Commission (SEC). The meeting centers around the growing pain point in the digital currency ecosystem as the market regulator gradually reverses years of regulation through enforcement tactics. Following the meeting, the investment giant shared the key subjects of discussion.

US SEC and BlackRock Meeting: The Five Key Highlights

It is worth noting, per the circular making the rounds on Crypto X, that the asset manager requested the meeting. 

The first item on both entities’ agendas was an overview of the BlackRock Digital Assets Product Suite. The firm’s products include the iShares Bitcoin Trust (IBIT), iShares Ethereum Trust (ETHA), and its tokenization product BUIDL.

Moving on from this, the duo also discussed staking, especially the likelihood of the US SEC permitting ETPs with staking capabilities. It is worth noting that ETF issuers have been seeking approval to stake on their respective offerings since then. As reported earlier by CoinGape, the regulator delayed Grayscale’s staking bid decision, showcasing its cautious stance regarding this product. 

Both entities also discussed tokenization and future Crypto ETP approval standards. While active Bitcoin and Ethereum ETF products exist in the United States, the comprehensive framework covering this niche remains vague. 

Lastly, BlackRock and the US SEC also discussed options for crypto ETFs. The discussion here includes the exercise limits and thresholds for underlying securities, most of which were not properly defined in the past.

Changing Regulatory Trend In the US

According to Crypto In America Founder Eleanor Terrett on X, the meeting between BlackRock and the regulator is the 99th commission it has held with industry participants since February. This is considered a major change, unlike the past administration, when industry-focused events were rare.

Since then, Acting SEC Chairman Mark Uyeda formed the Crypto Task Force. The unit has engaged in a roundtable discussion with industry stakeholders. Rather than a one-off event, the regulator has another roundtable scheduled for later this month, with plans to center the conversations around tokenization.

According to recent updates, SEC Commissioner Hester Peirce has hinted at a potential tokenization exemption order. This exemption targets mainstream traditional financial services providers, allowing them to tokenize products using Distributed Ledger Technology (DLT).

With the BlackRock move, industry participants are largely watching how the regulatory changes under SEC Chairman Paul Atkins will evolve in the coming years.