Hester Peirce, a Commissioner at the United States Securities and Exchange Commission (SEC), has emphasized the importance of decentralization in the country’s financial system, as well as a more lenient approach to regulating and enforcing crypto-related activities.
Known as “Crypto Mom,” Peirce expressed her views during a fireside chat with CNBC’s MacKenzie Sigalos at the ETHDenver conference on February 29. She highlighted the benefits of decentralization for the U.S. financial system, stating that centralization poses risks.
Peirce, who was appointed to the SEC by former President Donald Trump in 2018, has gained recognition for her support of the crypto industry and her opposition to excessive regulation of digital assets.
During the discussion, Peirce raised concerns about proposed legislation that seeks to classify decentralized technologies, such as network nodes, validators, noncustodial wallets, mining pools, and blockchain software, as financial institutions. She expressed confusion about the registration requirements and the lack of clarity on who should comply.
The conversation also touched on the implications of the broker/dealer rule, which could impact decentralized finance (DeFi), decentralized exchanges, and developers. Peirce acknowledged the challenges faced by the SEC in regulating interactions with code instead of individuals or entities.
Furthermore, Peirce mentioned that it may not be the SEC’s role to fully understand and embrace the crypto industry. She highlighted the SEC’s recent adoption of rules on February 6, which expanded registration requirements and compliance with securities laws for more market participants, including DeFi.
Peirce stressed the need for provisions that allow projects to grow and become decentralized without the fear of legal action, as the SEC is currently focused primarily on enforcement.
The SEC Commissioner also discussed various other crypto-related topics, including the agency’s future after the upcoming U.S. presidential election, the possibility of spot Bitcoin exchange-traded funds, and the impact of central bank digital currencies on financial surveillance.
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