Hester Peirce Outlines SEC’s Post-Gensler Agenda

Known as “Crypto Mom,” SEC Commissioner SEC Hester Peirce outlined three key areas for improvement in digital asset regulation during an interview with Fox Business.

Firstly, she believes the agency should cease attempts to restrict industry companies’ access to banking or custodial services.

Peirce compared the Commission’s approach to the U.S. Justice Department’s Operation Choke Point.

In the early 2010s, law enforcement launched this initiative to combat fraud in sectors they deemed at risk. Prosecutors often pressured financial institutions to deny services to clients without sufficient evidence of wrongdoing.

In 2017, the Justice Department ended the program, acknowledging it harmed legitimate businesses.

Regarding the next regulatory task in the crypto industry, Peirce emphasized the need to:

“Clarify the SEC’s jurisdiction, which assets are not securities, and which should not be considered under the agency’s regulation.”

Thirdly, the commissioner stressed the importance of the Commission engaging with industry representatives to study the application of existing rules and adjust them as necessary.

“These efforts should be collective and public, allowing everyone to participate. I believe we can achieve a good result relatively quickly,” she emphasized.

Peirce mentioned she was not surprised by current SEC Chair Gary Gensler’s decision to resign on January 20, 2025.

U.S. President-elect Donald Trump nominated former commissioner Paul Atkins for the position. Peirce noted she has worked with the candidate and is “familiar with his approach.”

“He understands how to address issues effectively and productively through policy without hindering the market. […] He maintains the right balance and, I believe, will handle these tasks well,” she added.

Earlier, Trump introduced the role of “czar” for AI and digital assets in his future administration, nominating David Sacks for the position.