SEC's first crypto roundtable: 12 bigwigs discuss Web3 security boundaries

On March 21, 2025, the U.S. Securities and Exchange Commission (SEC) Crypto Asset Special Working Group will host its first roundtable discussion at the SEC headquarters in Washington, D.C., with the theme "How We Got Here and How We Move Forward: Defining the State of Security." As the important kickoff of the SEC's "Spring Sprint: Towards Clarity in Crypto Regulation" series of activities, this meeting not only marks the regulator's move towards a more open dialogue on crypto assets, but also brings hope for rule clarification to the Web3 ecosystem. This article will delve into this highly anticipated meeting from four aspects: background, guest lineup, topic focus, and potential impact.

From Chaotic Regulation to Dialogue

In recent years, the rapid development of cryptocurrencies and Web3 technology has posed unprecedented challenges for global regulators. As the core regulator of the U.S. securities market, the SEC has long relied on "enforcement-style regulation" to deal with the crypto industry, such as through litigation to determine whether tokens are securities. However, this approach has been controversial within the industry due to a lack of clarity and is considered difficult to adapt to the complexity of blockchain technology. On March 4, 2025, the SEC announced the launch of the "Spring Sprint: Towards Clarity in Crypto Regulation" series of roundtable discussions, aiming to provide clear guidance on key areas of crypto asset regulation through public discussion.

The first meeting will be held from 1:00 to 5:00 PM on March 21 at the SEC headquarters, open to the public and live-streamed on SEC.gov, with recordings to be made available later. SEC Commissioner Hester M. Peirce stated, "I look forward to using the public's expertise to develop a workable crypto asset regulatory framework. The roundtable is an important step in our engagement with the public." This shift indicates that the SEC is moving from unilateral enforcement to bilateral communication, laying the foundation for future regulatory frameworks.

A Diverse Think Tank: The Cognitive Spectrum of the Twelve

This roundtable has invited 12 heavyweight guests from the legal, investment, and academic fields, whose diverse backgrounds and professional experiences will inject depth and breadth into the discussion. The meeting will be moderated by Troy Paredes (Founder of Paredes Strategies LLC, former SEC Commissioner), and the guest list and their brief introductions are as follows:

• Miles Jennings (General Counsel, a16z crypto): A legal pioneer in the venture capital field, adept at balancing compliance and innovation.
• Sarah Brennan (General Counsel, Delphi Ventures): An investment expert well-versed in crypto market financing strategies and legal challenges.
• Collins Belton (Executive Partner, Brookwood PC): A seasoned blockchain litigation lawyer with a focus on practical experience.
• Chris Brummer (Professor of Financial Technology, Georgetown University Law Center): An academic authority on the intersection of financial technology and regulatory policy.
• Troy Paredes (Founder, Paredes Strategies LLC): Former SEC Commissioner, familiar with the regulatory development process.
• Lewis Cohen (Co-Chair, CahillNXT): A veteran practitioner in the intersection of law and finance, adept at solving complex problems.
• Coy Garrison (Partner, Steptoe): A risk management expert providing compliance consulting for crypto companies.
• Teresa Goody Guillen (Partner, BakerHostetler): An industry observer focused on securities law and crypto regulation.
• Lee Reiners (Lecturer, Duke Financial Economics Center): A scholar researching the impact of cryptocurrencies on the financial system.
• Benjamin Schiffrin (Director of Securities Policy, Better Markets): A policy expert emphasizing investor protection and market stability.
• Rodrigo Seira (Special Counsel, Cooley LLP): A legal advisor supporting crypto startups.
• John Reed Stark (President, John Reed Stark Consulting LLC): A former SEC enforcement official, well-versed in the details of regulatory enforcement.

These 12 guests will discuss the challenges of crypto asset regulation from different perspectives, ensuring that the discussion combines theoretical height and practical value.

Topic Focus: "How We Got Here and How We Move Forward: Defining the State of Security"

The theme "How We Got Here and How We Move Forward: Defining the State of Security" directly addresses the core issue of crypto asset regulation: which tokens should be classified as securities and fall under SEC jurisdiction? For a long time, the Web3 community has been doubtful about the applicability of traditional securities laws (such as the Howey test) in the blockchain realm. For example, are the tokens of decentralized projects considered "investment contracts"? How does regulatory uncertainty affect industry development? The discussion will focus on the following key issues:

1. Status Quo Review: Analyzing the current dilemmas in crypto asset regulation and their causes.
2. Security Definition: Exploring the criteria for token classification and their legal boundaries.
3. Future Path: Providing compliance guidance for decentralized projects and industry participants.

This topic not only concerns the compliance costs of project parties, but will also impact the innovation space and development direction of the Web3 ecosystem. The meeting aims to chart a path out of the regulatory dilemma by reviewing the past and defining the present. The outcome of this roundtable discussion will have a far-reaching impact on the Web3 community, potentially reshaping the industry landscape in both the short and long term:

Short-term Impact

• Preliminary Consensus: The meeting may reach a preliminary consensus on the nature of certain crypto assets or regulatory principles, providing short-term guidance for the industry.
• Market Confidence: Clear policy signals may attract more institutional capital, driving market recovery.

Long-term Impact

• Framework Outline: The discussion results will provide a reference for the SEC's subsequent policy-making, and may even drive legislative progress.
• Industry Differentiation: Clearly defined rules may accelerate market maturity, but also increase compliance pressure on smaller projects.

For Web3, regulatory clarity is both an opportunity and a challenge. On the one hand, it is expected to eliminate uncertainty and promote standardized development; on the other hand, the increased compliance threshold may limit the innovative vitality of startups. The industry needs to closely monitor the progress of the meeting to ensure that regulation and innovation achieve a balance.

Conclusion: Dialogue Opens a New Future for Web3

The SEC Crypto Asset Special Working Group's first roundtable discussion is not only the first in-depth interaction between the regulator and the industry, but also a valuable opportunity for Web3 participants to shape the regulatory landscape. The public discussion from 1:00 to 5:00 PM on March 21, 2025, which will be live-streamed on SEC.gov, will showcase the SEC's new thinking on crypto regulation to the world. As the opening of the "Spring Sprint: Towards Clarity in Crypto Regulation" series, the results of this meeting are worth anticipating.

Whether it is the clash of technologies or the battle of rules, this dialogue will inject new vitality into the legal definition and regulatory path of crypto assets. As observers and participants in the blockchain industry, we should continue to follow the subsequent developments and witness Web3's journey towards a more mature future through this dialogue.