SEC Commissioner Hester Peirce Resigns, Reflects on Crypto Regulation and Unfinished Work

Peirce wraps up decade-long SEC tenure

Hester Peirce is ending her nearly ten-year term as a commissioner at the U.S. Securities and Exchange Commission (SEC). Her last day is October 2. In an exclusive interview with The Block, Peirce reflected on her work in digital asset regulation and the unfinished goals she hopes others will complete.

Peirce, a Republican commissioner, served under chairs Jay Clayton, Gary Gensler, and current chair Paul Atkins. She is known for advocating clearer rules for the cryptocurrency industry. On Friday, she posted a resignation letter to President Donald Trump on X.

Key takeaways from her departure

• Peirce pushed for a crypto task force and welcomed staff statements clarifying staking rules.
• She criticized past enforcement actions against major crypto firms for failing to register.
• Her exit leaves Republican Chair Paul Atkins and Commissioner Mark Uyeda as the sole leaders.
• Democrats have urged the administration to appoint more commissioners to restore a five-person bipartisan board.

Regret over delayed regulatory clarity

When asked about her biggest takeaway, Peirce stated it is a "shame" that the U.S. did not establish good crypto regulatory policy sooner. She believes the industry lost ground fighting unnecessary battles instead of building a framework that protects both investors and developers. She noted that getting regulation wrong for a long time can have lasting negative consequences.

Despite this regret, Peirce highlighted a shift in the last two years toward a proactive approach. She noted the SEC has moved from pure enforcement to working on sensible regulations, including the recent release of "Regulation Crypto Assets" and an innovation exemption.

Unfinished priorities and future plans

Peirce admitted there is "no good time to leave" because significant work remains. She specifically cited the need to finalize transfer agent rules and address investment advisor custody issues. She also expressed a desire to start a compliance officer advisory committee, though she noted this is not specific to crypto.

Regarding specific crypto needs, Peirce emphasized the importance of protecting software developers. She argued that creators should not be held liable if someone misuses a tool they built, provided the creator did not participate in the bad conduct. She also called for a review of financial surveillance practices in the United States.

After leaving the SEC, Peirce will join the Regent University School of Law to teach securities law and writing. She dismissed rumors that she might start baking sourdough bread.

What comes next for the agency

The SEC continues to move forward with its regulatory agenda even as Peirce departs. The agency recently released an innovation exemption, which is a temporary five-year measure. The stated goal is to begin work immediately on creating a permanent rule set based on feedback received during the comment period.

Source

• The Block

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