'Crypto Mom' Hester Peirce Expresses Concern At SEC's Regulatory Approach On Digital Assets: 'I Worry It Can End Up Taking Away Several Benefits That Crypto Offers'

SEC Commissioner Hester Peirce, affectionately known as “Crypto Mom,” acknowledged that the current model of engagement between the regulator and cryptocurrency companies was not working well.

What happened: While speaking on X Spaces Wednesday, Pierce regretted that the SEC has failed to set up a model where companies can come and have productive discussions to find a path forward that satisfies both commercial needs and securities laws. 

Pierce echoed what many in the cryptocurrency industry have accused the SEC of – overreaching its jurisdiction. 

"Some of the activities are just completely outside the capital markets and shouldn't be in our reach at all," Pierce, one of two Republican commissioners of the SEC, stated. 

Purse added that the SEC and Congress should have a healthy debate about which aspects of the cryptocurrency space need to be regulated and by whom.

She also expressed concern about regulatory approaches that push towards centralization in an industry that is known for decentralization. "I worry they end up taking away several benefits that crypto offers."

See Also: Donald Trump’s Pro-Bitcoin Stance Influenced Ethereum ETF Approval, Analyst Posits

Why It Matters: Heister is known for her supportive stance on cryptocurrencies, having opposed the regulatory agency’s efforts to block Ethereum ETH/USD ETFs and target companies such as Coinbase and Kraken.

She has also criticized the SEC's cautious approach to cryptocurrency legislation, saying, "The government is not there to protect people from their own choices. It's there to protect people if someone else harms them."

Peirce is speculated to be the frontrunner to succeed current SEC chair Gary Gensler if Republican nominee Donald Trump comes back to power. 

In its latest attack on the cryptocurrency industry, the SEC slapped NFT marketplace OpenSea with a Wells Notice, alleging that NFTs traded on its platform should be classified as securities.

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