SEC Commissioner Hester Peirce, affectionately known as “Crypto Mom,” has expressed her dissatisfaction with the current model of engagement between the regulator and cryptocurrency companies. While speaking on X Spaces Wednesday, Peirce lamented the SEC’s failure to establish a framework for productive discussions with companies seeking clarity on navigating the intersection of commercial needs and securities laws.
Peirce’s remarks echo concerns voiced by many in the cryptocurrency industry who have accused the SEC of overextending its regulatory authority. She specifically criticized the SEC’s attempt to regulate activities that fall outside the traditional capital markets. “Some of the activities are just completely outside the capital markets and shouldn’t be in our reach at all,” Peirce, one of two Republican commissioners on the SEC, asserted.
Peirce also advocated for a more nuanced approach to regulation, urging the SEC and Congress to engage in a thorough debate on which aspects of the cryptocurrency space require regulation and by whom. She expressed deep concern over regulatory approaches that push toward centralization within an industry known for its decentralized nature. “I worry they end up taking away several benefits that crypto offers,” Peirce stated.
Her concerns stem from her known support for cryptocurrencies. Peirce has publicly opposed the SEC’s efforts to block Ethereum ETFs and has criticized the agency’s aggressive actions against companies like Coinbase and Kraken. She has also voiced her disapproval of the SEC’s cautious approach to cryptocurrency legislation, arguing that the government’s role is not to shield individuals from their own choices but to protect them from harm caused by others.
Peirce’s comments come at a time when the SEC is facing increasing scrutiny for its aggressive stance on the cryptocurrency industry. The SEC recently issued a Wells Notice to NFT marketplace OpenSea, alleging that NFTs traded on its platform should be classified as securities.
Peirce is widely considered a frontrunner to succeed current SEC Chair Gary Gensler if Republican nominee Donald Trump returns to power. Her outspoken advocacy for the cryptocurrency industry makes her a potential catalyst for significant changes in how the SEC approaches crypto regulation.
