Revamping Cryptocurrency: Insights on SEC’s Emerging Plans from Hester Peirce

Key Points

• The SEC is reevaluating past enforcement actions against crypto firms under the Trump administration.
• SEC Commissioner Hester Peirce is advocating for a regulatory framework that promotes crypto innovation.

The US Securities and Exchange Commission (SEC) is currently reevaluating its previous enforcement actions against cryptocurrency firms. This move is seen as a shift towards a more pro-crypto stance under the administration of the 47th U.S. President, Donald Trump.

SEC Commissioner Hester Peirce has disclosed this development, indicating a potential change in the regulatory approach towards the crypto industry.

SEC’s Changing Stance on Crypto

In a recent “Bloomberg Crypto” TV interview, Peirce stated, “During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical. We’re trying to get back to a path where we’re really using our other tools to make policy.”

Peirce has also expressed her vision for a dedicated task force to develop a regulatory framework that encourages innovation while minimizing the risk of fraud. This perspective contrasts sharply with the approach taken by Gary Gensler, the SEC Chair under President Joe Biden.

Legal Battles and Regulatory Tensions

Crypto companies such as Uniswap, Ethereum , Consensys, Robinhood, and Crypto.com have reportedly received Wells Notices from the SEC, leading to heightened regulatory tensions.

Despite facing criticism, Gensler remained firm on his views about cryptocurrency, stating, “Crypto is a small piece of our overall markets. But, it’s an outsized piece of the scams and frauds and problems in the markets.”

Peirce’s ongoing support for Bitcoin ETFs and her strong opposition to aggressive enforcement actions have earned her the nickname “Crypto Mom” within the industry.

With the SEC now reconsidering its legal battles and regulatory strategy, industry participants are hopeful for a potential policy reset that could redefine the future of the crypto industry in the U.S.