SEC Commissioner Hester Peirce: Regulators should take a sterner line with the DeFi sector

Known for her generally friendly stance toward digital assets, SEC Commissioner Hester Peirce, in an interview with DeCrypt, said there is a need to show less leniency in regulating the decentralised finance sector.

“[Decentralised finance] will force the SEC to sit down and ask some fundamental questions about regulation,” she explained.

The non-custodial lending protocols, synthetic equities and the DEX sector have moved toward active decentralisation. Lawyers say it could involve the distribution of securities, which falls within the SEC’s remit.

Peirce, in the interview, explained the regulator’s role in a new environment consisting of thousands of anonymous users.

“The goal of DeFi, as I understand it, is to remove intermediaries and allow people to interact directly with one another. And, as a rule, the supervision of the financial system is structured to regulate intermediaries,” she clarified.

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

Known as the ‘crypto mom’, the commissioner intends to alter the existing rules. In her view, they should ease Americans’ access to regulated crypto markets and help companies raise financing.

“My top priority is to enable citizens to participate in mutually beneficial transactions, provided that no one is defrauded,” she said.

One of Peirce’s priorities is to introduce three-year regulatory holidays from the token sale. In her view, this period should be sufficient for startups to develop their decentralised networks and communities, without being distracted by regulatory issues.

In an interview with the ‘Crypto Mom’ publication, she admitted she harbours doubts about persuading other commissioners to back this initiative.

Earlier in July, Hester Peirce criticised her colleagues’ actions regarding the Telegram token sale.

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