The U.S. Securities and Exchange Commission (SEC) has announced the formation of a task force dedicated to crafting a regulatory framework for cryptocurrency assets.

This represents the first significant policy action by President Donald Trump's administration to engage with the expanding crypto sector.

Led by Republican Commissioner Mark Uyeda and Commissioner Hester Peirce, the task force will work on setting clear regulatory guidelines, developing pathways for crypto asset registration, and establishing sensible disclosure frameworks.

It will also assist lawmakers in drafting cryptocurrency-related legislation and collaborate with other federal agencies, such as the Commodity Futures Trading Commission (CFTC).

This initiative follows earlier regulatory difficulties encountered by crypto companies during the Biden administration, which saw the SEC sue firms like Coinbase and Kraken for allegedly breaching securities laws.

Both companies have denied the accusations and called for more explicit regulations.

Under Trump's administration, which has promised to be a 'crypto president,' the new SEC leadership aims to reduce regulatory oversight and promote the adoption of digital assets.

This announcement has been welcomed by industry leaders, including Jonathan Jachym, Kraken's global head of policy, who called it a move towards 'real policy solutions.' It has also led to a rise in cryptocurrency prices, with Bitcoin hitting a record high of $109,071.

The task force will additionally coordinate with state and international regulatory bodies to ensure a comprehensive approach to crypto regulation.