SEC Commissioner Hester Peirce Proposes Clear Crypto Regulations to Reduce Uncertainty

Washington, D.C. – SEC Commissioner Hester Peirce is advocating for clearer regulatory guidelines for the cryptocurrency industry, which has long criticized the government's inconsistent approach. In an interview with Yahoo Finance on Friday, Peirce emphasized the need for a legal framework that is both practical and aligned with existing laws.

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“I want to create a system where people can understand asset classifications without excessive legal costs or the fear of lawsuits,” Peirce stated.

As the new head of the SEC’s crypto task force, Peirce is in a key position to shape future policies. Her appointment has been well-received in the crypto community, where she is often called “Crypto Mom.”

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On Friday, she released a statement titled “There Must Be Some Way Out of Here,” seeking public feedback on how the SEC should regulate cryptocurrencies. The change in administration has raised hopes within the crypto industry for a fresh approach to oversight.

Under former SEC Chair Gary Gensler, the commission frequently clashed with major crypto firms, leading to lawsuits and enforcement actions. One of the most significant cases was against Coinbase (COIN), the largest U.S. cryptocurrency exchange. The SEC claimed that many assets traded on the platform were unregistered securities. Coinbase is now optimistic that the case may be reconsidered, with a commissioner vote expected next Thursday.

“It’s a turning point for crypto regulation in the U.S., and it couldn’t have come sooner,” said Paul Grewal, Coinbase’s chief legal officer, praising Peirce and acting SEC Chair Mark Uyeda for their efforts.

Grewal criticized the previous administration's approach, arguing that companies struggled to engage in productive discussions with the SEC. He commended Peirce’s efforts to foster transparency and establish clear regulations.

Peirce has proposed creating a new legal framework that provides more clarity for crypto businesses. One idea under consideration is temporarily exempting digital assets from securities classification, provided issuers disclose essential information and comply with fraud regulations. This approach could apply to both past and future offerings.

“This could be an effective short-term solution while we work on a permanent regulatory framework,” Peirce explained.

She also supports the approval of staking options and exchange-traded funds (ETFs) for ether (ETH-USD). While the previous administration approved Bitcoin and Ether spot ETFs, staking and Ether ETF options were left out.

Regarding reports that former President Donald Trump’s media company might apply for a Bitcoin ETF, Peirce stated that all applications are reviewed based on standard criteria, regardless of political affiliations.

“We assess each application fairly, considering its unique circumstances,” she said.

Peirce also addressed concerns about the SEC’s efficiency, acknowledging efforts to streamline operations while maintaining regulatory oversight. A recent review found that the agency has cut costs by canceling certain media subscriptions.

On the topic of climate-related regulations, Peirce noted that the SEC has not yet decided whether to roll back a rule requiring companies to disclose climate change-related business impacts. She previously voiced concerns about the rule when it was introduced.

In a broader regulatory move, former President Trump recently signed an executive order requiring independent agencies to submit major regulations for review by the Office of Management and Budget (OMB). Peirce welcomed this oversight, emphasizing the importance of economic analysis in crafting regulations.

“The OMB plays a crucial role in ensuring regulations are effective and balanced,” Peirce noted. “I look forward to collaborating with them to improve our approach.”

With new leadership at the SEC, the crypto industry is hopeful for more transparent and practical regulations in the near future.

Also Read: SEC to Dismiss Coinbase Lawsuit, Changing U.S. Crypto Enforcement Approach