SEC Crypto Law: Not Everything is a Financial Asset – Says Hester Peirce

• Hester Pierce, commissioner of the US Securities and Exchange Commission (SEC), discussed a possible United States crypto legal framework, emphasizing that not all uses are financial.
• She argued that cryptocurrency laws in the United States should be “reserved” and not regulate the technology as though every use is financial.
• Peirce also called for self-regulation from the crypto industry and encouraged the SEC to take an appropriate approach to innovation.

Hester Peirce on Crypto Regulation

Securities and Exchange Commissioner Hester Peirce discussed a possible United States crypto legal framework, giving a reminder that not all uses are financial.

Crypto Regulations Should Be Reserved

Peirce argued that cryptocurrency laws in the United States should be “reserved” and not regulate the technology as though every use is financial. She explained while crypto is thought of in “very financial terms,” other uses exist , such as enabling people to interact without requiring a centralized entity.

Encouraging Self-Regulation

Peirce advised the crypto industry to undertake self-regulation and pay attention to counterparty risks, conflicts of interest, market manipulation, custody arrangements and other investor protection concerns.

Appropriate Approach To Innovation

Alluding to the collapse of FTX and the allegations of misconduct that followed, Peirce called for an appropriate approach to innovation from the SEC.

“Crypto Mom” Speaks Up

“Crypto presents [the SEC] an opportunity to rethink how we approach innovation,” said Peirce. She believes if she can’t speak freely about her advocacy for crypto, “then I don’t know why I’m in that position.”