SEC Commissioner Hester Peirce expressed to Yahoo Finance on Friday that she aims to offer “greater clarity” to a crypto sector that has long claimed it has been treated inconsistently and unfairly by Washington, D.C.
“I hope we can reach a point,” Peirce stated in an interview, “where we establish greater clarity regarding” a legal framework that is “practical, aligns with the statute, and helps people determine the classification of assets … without having to hire numerous attorneys or worry about potential litigation.”
Peirce is now in a pivotal position to shape the future policy at the Securities and Exchange Commission (SEC), where she has taken on the role of leader of a crypto task force established following the new Trump administration’s arrival. Her leadership of this task force has been welcomed by members of the crypto community, some affectionately calling her “crypto mom.”
On Friday, Peirce released a statement titled “There Must Be Some Way Out of Here,” requesting public feedback on how the SEC should engage with the industry henceforth, presenting several questions aimed at fostering greater regulatory clarity.
Hester M. Peirce, second from right, testifying in 2019 alongside other SEC commissioners. (Photo By Tom William/CQ-Roll Call, Inc via Getty Images) ·Tom Williams via Getty Images
The change in administration has sparked significant optimism within the crypto sector regarding a potential shift in the SEC’s approach.
Under President Biden, the SEC, led by Gary Gensler, was in frequent conflict with top industry players, engaging in lawsuits and enforcement actions while citing violations of securities laws.
One of the most notable lawsuits involved Coinbase (COIN), the largest cryptocurrency exchange in the United States. The SEC contended that many digital assets traded on Coinbase’s platform should be classified as securities and that Coinbase failed to register as a securities exchange.
Coinbase announced on Friday that it anticipates the new SEC will dismiss this ongoing case, with a vote among commissioners slated for next Thursday.
“This marks a new era for crypto in the United States, and it couldn’t have arrived soon enough,” stated Paul Grewal, Coinbase’s chief legal officer.
Grewal emphasized that Peirce and acting SEC chair Mark Uyeda deserve significant recognition. The Senate has not yet confirmed Trump’s nominee for SEC chair, Paul Atkins.
“They have swiftly initiated a shift from Gary Gensler’s misdirected regulatory enforcement campaign, rapidly moving toward rulemaking, rekindling dialogue with the industry, and concentrating on the future,” he remarked.
Paul Grewal, chief legal officer at Coinbase. (Anna Rose Layden/Getty Images) ·Anna Rose Layden via Getty Images
Peirce refrained from commenting on the ongoing case or her possible voting stance, stating, “I cannot discuss ongoing cases.”
Grewal mentioned that Coinbase faced significant challenges communicating with the SEC during the previous administration, but now the firm is maintaining regular discussions.
“We are in ongoing communication with the SEC, particularly its crypto task force,” said Grewal. “Commissioner Peirce has effectively initiated a transparent public process for gathering input on desirable rules.”
Peirce expressed her hope that the SEC could develop a practice to facilitate conversations where the agency could assess when registration is necessary.
“We need to move beyond merely informing individuals that they can register and then closing the door upon their arrival, which has characterized past practices,” Peirce remarked.
During the previous administration, the SEC chose not to implement tailored rules for crypto, consistently asserting that many tokens qualified as securities and that firms had to adhere to existing regulations. Enforcement actions against crypto firms were commonplace as the SEC claimed violations of securities laws.
Peirce indicated her intention to establish a new legal framework that could alleviate some of the concerns among market participants.
One proposal being seriously considered would temporarily classify digital asset coin offerings as non-securities if the issuer provides specific information and agrees not to contest any fraud allegations, applicable to both future and past offerings.
“This could serve as a significant initial step, even if it’s just a temporary measure while Congress deliberates and we develop regulations,” she stated.
Peirce also mentioned her openness to permitting staking and approving options for ether (ETH-USD) exchange-traded funds (ETFs). Staking involves locking digital coins to help in operating and securing the blockchain in exchange for a return yield.
While the previous administration greenlit spot bitcoin (BTC-USD) and ether ETFs, along with bitcoin ETF options, it did not approve staking or ether ETF options.
Peirce also stated that if President Donald Trump’s media company seeks authorization to launch a bitcoin ETF, the SEC will assess it like any other application, notwithstanding its oversight from the White House.
“We evaluate every application based on its specific facts and circumstances, keeping in mind the unique details tied to each one,” she affirmed. “We will apply that approach to anything submitted to us.”
When queried about whether Elon Musk’s Department of Government Efficiency (DOGE) has been in contact with the SEC, Peirce stated she could not confirm that. A public records review reveals that DOGE has claimed over $206,000 in savings by canceling SEC media subscriptions from outlets like Politico Pro and Reuters.
Peirce emphasized that the SEC continually seeks ways to enhance its operational efficiency while ensuring oversight of capital markets.
“That is a constant consideration for us,” Peirce remarked. “We believe we have a genuine obligation; we have an outstanding staff here, and we want to ensure they are engaged in the most impactful projects.”
Additionally, the SEC has not yet decided whether to reverse a rule introduced by the Biden administration that mandates companies disclose how climate change affects their business operations. The acting SEC chair recently instructed SEC attorneys to postpone oral arguments regarding the climate change regulation.
“I have expressed my concerns regarding that regulation quite vociferously at the time of its proposal and adoption,” Peirce stated. “We will certainly consider these matters going forward.”
This week, Trump issued a new executive order directing that independent agencies submit significant regulations for review to the Office of Management and Budget (OMB). Peirce stated that the OMB could provide valuable assistance in analyzing economic factors and selecting optimal solutions for issues.
“They possess expertise in this field,” Peirce remarked. “I look forward to collaborating with them to ensure our economic analysis is fully leveraged to its potential.”
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