Crypto Task Force Meets Industry Experts

On February 25, 2025, the crypto task force held meetings with representatives from Chia Network Inc. and Better Markets to discuss cryptocurrency regulation and strategies to combat fraud in the crypto space.

> 🚨NEW: Looks like we’ve got some new entries in the @SECGov #crypto task force meeting log this week:
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> Notably — perhaps the first crypto “critics” to meet with the task force so far — @BetterMarkets. The group’s Director of Securities Policy Benjamin Schiffrin was in… pic.twitter.com/ymzCzBicTp
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> — Eleanor Terrett (@EleanorTerrett) February 25, 2025

During the meeting with Chia Network Inc., key participants included Gene Hoffman, President & CEO of Chia Network Inc., Trent Martensen, Co-CEO of Permuto Capital, and Thomas Chow, Chief Legal Officer of Chia Network. The discussion included important concerns such as improving the regulation of crypto assets and the importance of preventing fraud in the industry.

Key Points Raised During the Meeting:

1. Decentralization Norms: The industry called for a clear understanding of what constitutes decentralization, emphasizing that decentralized systems carry different risk profiles than centralized technologies. Input from blockchain experts was deemed essential for the SEC to define technical decentralization and set standards.
2. Token Registration and ICOs: An update to Regulation A was called for, addressing the evolving needs of projects that issue their own tokens. Successful token registration for issuers was suggested, with a transition period for projects not yet sufficiently decentralized.
3. Innovative Financial Products: Chia Network representatives emphasized the need for fair SEC treatment of filings related to blockchain technology.
4. Regulatory Sandbox Debate: While the Task Force explored a regulatory sandbox, Chia Network expressed concerns about it creating incentives for rushed token issuance, advocating instead for a structured registration pathway.

In addition to the discussion with Chia Network, the Crypto Task Force also met with Better Markets, represented by Ben Schiffrin, Director of Securities Policy. This conversation focused on approaches to tackle fraud in the crypto sector and strengthen asset regulation.

As discussions continue, the Crypto Task Force is expected to incorporate feedback from these meetings into their ongoing work and release follow-up materials, including insights from Chia Network’s S-1 filing and decentralization research for further information on proceedings and future discussions.