SEC Commissioner Hester Peirce: Crypto industries need ‘progressive’ rules

The U.S. Securities and Exchange Commission (SEC) is unlikely to fold digital assets into its regulatory framework, and the experience of Wyoming’s “extremely progressive” state banking board may prove useful. That is the view of Hester Peirce, the SEC commissioner known as the “crypto mom.”

In an online conference interview, Peirce questioned whether the Commission’s existing regulatory framework could integrate such an innovative space as cryptocurrencies.

According to the commissioner, unlike Wyoming, at the federal level blockchain startups would have to Bitcoin exchange Kraken and cryptocurrency startup Avanti spend a ton of money, time and endure misery — an outcome that would also affect Kraken and Avanti.

“I am convinced that we need new rules. Our securities laws are flexible enough, but they do not fit the challenges arising from cryptocurrencies. I advocate a more innovative approach to regulation,” Peirce said.

In September and October, the Wyoming State Banking Board granted SPDI status with the functions of a traditional financial institution to the Bitcoin exchange Kraken and to the cryptocurrency startup Avanti.

In October, SEC Commissioner Hester Peirce warned about examining regulatory questions in the DeFi sector.

In August, the U.S. Senate confirmed Peirce as a special SEC appointee for a second term until June 5, 2025.

Earlier, she criticized the actions of her colleagues regarding the Telegram Open Network token sale.

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