Regulation
Hester Peirce Outlines SEC’s Crypto Reforms Under Donald Trump’s Leadership
Hester Peirce, a Commissioner at the U.S. Securities and Exchange Commission (SEC), outlined her vision for the agency’s approach to crypto regulation under the leadership of President-elect Donald Trump. During a recent interview, Peirce identified three major priorities she believes will provide much-needed clarity and foster growth in the crypto industry.
Hester Peirce Unveils SEC’s Crypto Agenda for Reform Under Donald Trump
According to a Fox Business interview, Hester Peirce made it clear that the SEC’s regulatory approach to cryptocurrencies must evolve under Donald Trump’s leadership. One of her primary points was to halt what she referred to as the “regulatory suppression” of the crypto industry. She argued that the SEC should cease restricting crypto’s access to necessary services, such as custody, which are vital for the sector’s growth.
Peirce stressed that such services are essential for crypto businesses to function properly and continue their expansion. Her call for ending the blockages on custody and other services aligns with a broader vision of enabling the crypto market.
Moreover, most recently, David Sacks, the incoming Crypto Czar, addressed the growing concerns around Operation Chokepoint 2.0. His comments followed an account from Chris Lane, the former CTO of Silvergate Bank, who claimed that regulators, rather than the collapse of FTX, led to the bank’s downfall.
Lane described how regulatory actions severely limited Silvergate’s ability to hold deposits from digital asset clients, ultimately forcing the bank to shut down. Consequently, Sacks suggested that these allegations warrant further investigation, signaling a possible probe into Operation Chokepoint 2.0.
Providing Clarity on SEC Jurisdiction
Another central issue raised by Hester Peirce was the need for clearer guidance on what falls within the SEC’s jurisdiction. She highlighted the importance of providing clarity on which activities and assets the SEC should regulate. Peirce explained that clear delineations are needed to identify what qualifies as a security and what does not.
Peirce argued that clear definitions will help crypto businesses better understand their obligations. This clarity will allow them to navigate crypto regulations more effectively, reducing the risk of legal errors.
In addition, Hester Peirce also stressed the need for collaboration between the SEC and crypto industry stakeholders. She proposed that the SEC work directly with the industry to figure out how existing rules apply and where adjustments should be made.
Peirce suggested that this collaboration should be a public, open process, where all parties involved can participate.
Coincidentally, these remarks come as Coinbase exposed FDIC “pause letters” obtained through a FOIA request. The letters show the agency’s role in restricting banking services to crypto businesses in 2022.
According to the documents, FDIC instructed banks to pause crypto-related activities for further review. Coinbase’s CLO, Paul Grewal, emphasized that these letters confirm the existence of coordinated efforts to limit crypto banking access.
Ronny Mugendi
Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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