TheBlock
Hester Peirce is finishing nearly a decade at the SEC, where she advocated for clearer crypto rules across multiple administrations. In her final week, she said there was “no good time to leave” and pointed to unfinished work, including transfer-agent rules, investment-adviser and investment-company custody, and a permanent framework to follow the agency’s five-year innovation exemption.
Why it matters
Peirce said the United States lost ground while regulators and the crypto industry fought what she viewed as unnecessary enforcement battles instead of building a regulatory framework. She argued that clearer rules could protect investors and developers while making it harder for bad actors to operate. Her departure removes a prominent commissioner who pushed that approach, although she described the agency’s work as continuing beyond any one commissioner.
The SEC has moved ahead with guidance on how securities laws apply to digital assets and transactions, as well as its “Regulation Crypto Assets” work and innovation exemption. Peirce said the exemption is time-limited and that the goal should be to develop permanent rules. She also urged the commission to seek input from both crypto advocates and critics.
Market impact
Congressional action remains uncertain: Peirce said she was still hopeful the Clarity Act could advance, while the article reports that comprehensive crypto legislation has stalled in the Senate and is unlikely to become law this year. She said the SEC should continue using authority it already has while lawmakers consider legislation, and noted that the CFTC could address parts of a comprehensive spot-market framework.
Peirce also called for clearer protections for developers who build tools without participating in users’ misconduct, and for a better balance between financial surveillance and privacy. For crypto firms, her comments underline unresolved questions around custody, intermediaries, decentralization and the durability of rules. She will join Regent University School of Law as an associate professor, teaching securities law and writing.
Frequently asked questions
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What crypto rulemaking did Peirce say remains unfinished at the SEC?
She cited transfer-agent rules, investment-adviser and investment-company custody, and permanent rules to follow the five-year innovation exemption.
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What did Peirce say the SEC should do while crypto legislation is stalled?
She said the SEC should continue using the authority it already has to adopt rules while congressional efforts continue.
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How does the SEC’s innovation exemption fit into Peirce’s agenda?
Peirce described it as a time-limited, five-year exemption and said the goal should be to work toward a permanent rule set.
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What concerns did Peirce raise about crypto developers?
She said developers who build tools should be protected when they do not participate in wrongdoing committed by people using those tools.
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Where will Peirce work after leaving the SEC?
She is joining Regent University School of Law as an associate professor, where she will teach securities law and writing.
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