SEC Commissioner Hester Pierce Calls for Clearer Crypto Regulations Under New Leadership

Highlights:

• Hester Peirce calls for ending regulatory suppression and ensuring crypto access to essential services.
• She stresses defining non-securities clearly to reduce confusion and regulatory overreach.
• Peirce advocates for public collaboration between the SEC and the crypto industry to clarify rules.

In a recent interview with Fox Business, the U.S. Securities and Exchange Commission (SEC) commissioner Hester Pierce, affectionately known as “Hester Peirce Crypto Mom” for her advocacy of digital assets, shared suggestions about how the SEC under President-elect Donald Trump could enhance crypto regulations. She outlined three critical steps the SEC should take to clarify and support the crypto industry.

🚨NEW: @SECGov Commissioner @HesterPeirce just alluded to “Operation Chokepoint 2.0” in her interview with @LizClaman on @FoxBusiness and also outlined the 3 things she thinks need to be done under @realDonaldTrump’s new SEC to help give the #crypto industry some clarity.

1.…

— Eleanor Terrett (@EleanorTerrett) December 9, 2024

Hester Pierce Proposed Three Steps for Regulatory Clarity

Pierce urged SEC to stop “regulatory suppression” in the crypto industry. She said the SEC blocking crypto from accessing essential services like custody. She highlighted that these services are essential for crypto businesses to function and expand. 

Recently, David Sacks, the new Crypto Czar, spoke about concerns around Operation Chokepoint 2.0. His comments followed Chris Lane’s statement. Lane, the former CTO of Silvergate Bank, said regulators caused the bank’s downfall. He argued that the FTX collapse was not the main reason. Lane explained that regulatory actions restricted Silvergate’s ability to hold deposits from digital asset clients. This ultimately forced the bank to shut down.

Secondly, she urged the SEC to clearly define what is outside its regulatory scope. This includes identifying assets that are not securities and not under SEC oversight.

Peirce stated:

“Provide clarity around which things are not within the SEC’s ambit, so which things are not securities and which people don’t have to think about the SEC’s regulatory framework.”

Moreover, Peirce proposed that the SEC work with stakeholders to clarify rules and make necessary adjustments.

SEC Commissioner noted:

“Work with entities involved in crypto to try to figure out how the existing rules apply and where adjustments need to be made. And that needs to be a group exercise. It needs to be done in the public so that everyone can participate in it.”

Peirce’s Concerns Align with David Sacks on Operation Chokepoint 2.0

Peirce’s concerns match David Sacks’ remarks. He called for an investigation into Operation Choke Point 2.0. Sacks said these regulatory practices caused harm. He mentioned several cases where crypto entities faced big obstacles.

There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at. https://t.co/IhCdyQfx0g

— David Sacks (@DavidSacks) December 7, 2024

Paul Atkins Appointed SEC Chair: A New Era for Crypto Regulation

President-elect Donald Trump announced on Truth Social the nomination of Paul Atkins as the next SEC Chairman. Paul Atkins’ return will impact the SEC’s future direction. Trump noted that Atkins brings valuable experience as a former SEC Commissioner and CEO of Patomak Global Partners, a risk management firm. 

BREAKING 🔥 🔥

🇺🇸Trump officially selected pro-crypto Paul Atkins to replace Gary Gensler as SEC Chair.#BTC #Crypto 🚀🚀 pic.twitter.com/qjjGDHWAik

— Wise Advice (@wiseadvicesumit) December 4, 2024

The crypto community sees his return as positive, hoping for clarity and approval of cryptocurrency ETFs. Current SEC Chair Gary Gensle has been criticized for being too strict with crypto firms. Crypto leaders feel his leadership slowed innovation. The industry believes that Gensler’s resignation in January will bring change to the SEC.