Don’t Let Cryptocurrency Startups Get Stuck in the Definition of Securities! Crypto Mom Peirce: Establishing Clear and Sustainable Mechanisms is Key to Cryptocurrency Regulation.
U.S. SEC Commissioner Hester Peirce Advocates for Predictable Crypto Regulation
On March 26, at a blockchain summit in Washington, D.C., U.S. SEC Commissioner Hester Peirce, commonly known as “Crypto Mom,” stated that cryptocurrency regulation must establish a predictable and continuous system, rather than undergoing drastic changes with each new presidential administration.
With the relaxation of regulations following Trump’s administration, there appears to be a movement towards a more stable regulatory environment for the U.S. cryptocurrency industry, indirectly influencing the SEC’s enforcement actions against crypto operators.
Peirce Emphasizes the Need for Clear Rules Amidst Lack of Regulatory Stability
Peirce indicated that one of the biggest issues facing the cryptocurrency industry today is the “lack of regulatory stability.” She hopes that stakeholders can move beyond the ongoing debates about whether cryptocurrencies are securities, which she believes is not the primary concern for entrepreneurs in the industry at this moment.
She stressed that both the SEC and Congress should actively work to formulate clear regulations for cryptocurrency oversight, rather than merely issuing vague guidelines or statements that dwell in legal gray areas.
SEC Recently Eases Stance on Cases Involving Coinbase, Ripple, and Others
Recently, the SEC has withdrawn enforcement actions against several companies, including:
- Coinbase
- Ripple
- Kraken
- Immutable
Many observers believe this is related to the policies of the Trump administration, as executives from these companies recently expressed support for Trump during the presidential election. Current SEC Acting Chair ### Mark Uyeda and Crypto Mom Peirce are seen as key figures representing this shift in regulatory stance.
(Significant Shift in SEC Regulatory Attitude! Investigation into Robinhood Dropped, Crypto Mom Peirce Introduces Regulatory Sandbox)
Trump Signs Executive Order on Stablecoins Early in His Term
On his third day in office, Trump signed an executive order and established a task force to study a regulatory framework for crypto assets, including stablecoins, indicating that the new administration is seeking to find a new balance between “innovation” and “regulation.”
New SEC Nominee Paul Atkins to Discuss Cryptocurrency Regulation
The day after the summit (March 27), Trump’s nominee for the SEC, ### Paul Atkins, is set to attend a Senate Banking Committee hearing to answer questions from Congress regarding his views on cryptocurrency regulation.
Having previously served as an SEC commissioner, Atkins is also a shareholder in the RWA platform Securitize, and his consulting firm, Patomak Global Partners, became an advisor to FTX in 2022. His background has led Democratic anti-crypto legislator Elizabeth Warren to question whether he can maintain impartiality in future cryptocurrency regulation and combat illicit activities.
On the other hand, Congress is again proposing to pass the “Cryptocurrency Market Structure Bill” to clarify the regulatory authority between the SEC and the Commodity Futures Trading Commission (CFTC) over digital assets.
(New SEC Nominee Paul Atkins Discloses $6 Million Cryptocurrency Investment, FTX Conflict of Interest Remains a Concern)
Risk Warning
Investing in cryptocurrencies involves a high degree of risk, and prices may fluctuate significantly. You could lose your entire principal. Please assess risks carefully.
