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Sujha Sundararajan
Author
Sujha Sundararajan
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The US SEC Commissioner Hester Peirce has highlighted three crypto reforms that the regulator needs to rethink under Trump’s administration.
In an interview with Fox Business, Peirce stressed the need for regulatory clarity in the crypto industry. She outlined three priorities that the SEC could adopt to end regulatory suppression and provide the needed clarity.
Calling the ongoing regulatory crackdowns as “Operation Chokepoint 2.0,” she urged the SEC to cease blocking crypto’s access to essential services like custody.
“Step one is to stop this approach of trying to prevent crypto from getting access to the services that it needs — custody, for example — to move forward.”
Hester Peirce also highlighted that such services are necessary for the sector’s growth and businesses to function properly.
She also intended to clarify which digital assets are considered securities and which fall under the SEC’s regulations.
“Provide clarity around which things are not within the SEC’s ambit, so which things are not securities and which people don’t have to think about the SEC’s regulatory framework,” Peirce noted.
As a final reform, Hester Peirce highlighted the need to work with crypto entities to determine how the existing rules apply and whether adjustments need to be made. She stressed that this needs to be a “group exercise.”
“It needs to be done in public so that everyone can participate in it. And I think we can get to a good place to do that relatively quickly.”
Further, incoming Crypto Czar David Sacks hinted that Operation Chokepoint 2.0 needs to be probed. His comments came after former CTO of Silvergate Bank Chris Lane gave account of why the institution collapsed.
Hester Peirce’s Suggestion Sparks Skepticism
Though Peirce’s reforms to clarify SEC’s regulation on cryptos gained support, her approach has stirred criticism and fear.
David Barrera, CEO of Enumma, wrote on X that her vision could result in more tokens classified as securities.
“She won’t be generous to crypto in trying to set the perimeter outside of which the SEC doesn’t have jurisdiction.” The concern is finding a balance with some adjustments to the existing crypto rule, without undermining the existing regulatory framework.
Last month, the US Representative French Hill told Cryptonews that Republican Hester Peirce will “probably be the new acting chair of the US Securities and Exchange Commission (SEC).”
