Peirce Advocates for Lasting Regulations

US Securities and Exchange Commission (SEC) member Hester Peirce, affectionately dubbed the 'Crypto Mom', delivered an insightful address at the DC Blockchain Summit. She spoke about where she envisions digital asset regulation moving under the current administration. Peirce, leading the SEC's crypto task force, expressed her belief that the commission could foster more durability in digital asset regulations. This would be achieved through rulemaking at the agency level and supportive legislation in Congress.

Peirce highlighted a preference for formal rulemaking and laws rather than relying solely on guidance, such as the recent statement declaring memecoins non-securities. "I hope people won't be sitting around thinking about the Howey test," she remarked, underscoring the need for clarity in the regulatory space. Peirce's vision is to define the SEC's jurisdiction clearly and provide a path forward for crypto firms.

A Shift in SEC's Approach

Her comments are timely, as the SEC has recently dropped several investigations and enforcement actions against prominent crypto firms, including Coinbase and Ripple. This shift under acting chair Mark Uyeda is perceived by some as aligned with US President Donald Trump's strategy to ease regulatory pressures on firms that supported his 2024 campaign.

Legislative Momentum in Congress

The 119th session of Congress has seen lawmakers pushing for a market structure bill. This legislation aims to clarify the roles of the SEC and Commodity Futures Trading Commission in overseeing digital assets. In a significant move, President Trump signed an executive order to establish a working group to explore a regulatory framework for stablecoins.

Upcoming Senate Hearings

Paul Atkins, nominated by Trump as an SEC commissioner, is set to appear before the Senate Banking Committee. Atkins is expected to discuss his views on crypto regulation. His nomination and potential confirmation could further shape the direction of the SEC's approach to digital assets. "Many in the crypto industry have indicated support for the former commissioner," reflecting the anticipation surrounding his potential term.

Looking Ahead

As the SEC navigates these regulatory waters, Peirce's call for durable and clear regulations may serve as a guiding principle. The evolving landscape of crypto regulation under the Trump administration presents both challenges and opportunities for firms and regulators alike.