Commissioner Hester Peirce, also known as “Crypto Mom,” has made a case for greater decentralization in the U.S. financial system and a more lenient approach to crypto regulation and enforcement. Speaking at the ETHDenver conference, she emphasized the benefits of decentralization for the financial system, highlighting the risks associated with centralization. Peirce, who was appointed to the U.S. Securities and Exchange Commission (SEC) in 2018, has gained a reputation for supporting the crypto industry and opposing excessive regulation of digital assets.
During her talk, Peirce expressed concerns about proposed legislation that would classify decentralized technologies as financial institutions. She noted that the lack of clarity regarding registration requirements is troubling. Peirce also addressed the implications of the broker/dealer rule, which could impact decentralized finance (DeFi), decentralized exchanges, and developers. She acknowledged the challenges faced by the SEC in regulating interactions with code instead of individuals or entities.
Peirce stated that it is not necessarily the SEC’s role to become comfortable with crypto, indicating that the agency’s focus should not solely be on enforcement. She emphasized the need for provisions that allow projects to grow and become decentralized without the fear of legal action. The SEC recently implemented rules that expand its oversight of the DeFi space, requiring more market participants to register and comply with securities laws.
In addition, Peirce discussed various crypto-related topics, including the future of the SEC following the U.S. presidential election, the potential approval of spot Bitcoin exchange-traded funds (ETFs), and the development of central bank digital currencies. She also touched on concerns about state financial surveillance and whether SEC Chair Gary Gensler holds the final decision-making authority.
Overall, Peirce’s remarks at the ETHDenver conference highlight her advocacy for decentralization and a more balanced approach to crypto regulation, reflecting her nickname, “Crypto Mom.”