By Michael Scott
The SEC Commissioner Hester Peirce affirmed her pro-crypto stance to pursue clarity for digital assets regulation.
The Securities and Exchange Commission (SEC) Peirce revealed a commitment to eliminate regulatory ambiguity for the digital assets industry. The devotion to bringing greater clarity for cryptocurrency featured when Peirce appeared in a Yahoo Finance interview on Friday, Feb 21.
Peirce commitment comes as many industry executives have decried the inconsistent and unfair approach under the Biden administration. The sector welcomes reforms following Gary Gensler’s exit and President Donald Trump’s appointment of Commissioner Mark Uyeda as acting chair.
Push for Greater Clarity
Peirce envisions greater clarity within the digital assets sector supported by a workable legal framework. She endorsed a system facilitating individuals to understand the classification of assets without subjecting them to legal costs or fueling anxiety about potential enforcement actions.
The support of regulatory clarity aligns with Peirce’s pivotal role in shaping future policy for digital assets at the SEC. Notably, she heads the newly formed crypto task force following the post-Gensler changes to the administration. The appointment of Peirce prompted industry-wide support within the crypto community, with many profiling her as the “crypto mom.”
In her Friday statement, Peirce was optimistic about a solution existing out here as she urged the public input on how the Commission should engage with the crypto industry moving forward. The crypto advocate posed several questions whose answers align with fostering regulatory clarity.
The arrival of a pro-crypto administration under Donald Trump is sparking optimism that Peirce will consider orienting the SEC to a receptive tone to the crypto sector. The policy shift contrasts Gensler’s leadership when the securities watchdog frequently clashed with multiple industry players via enforcement actions and lawsuits alleging violation of the federal laws.
A notable illustration is one involving the US largest crypto exchange ,Coinbase where the regulator alleged the platform offered non-registered securities. However, the Friday announcement by Coinbase revealed anticipation for the SEC to drop this case in a vote Commissioners take on Thursday.
Coinbase chief legal executive Paul Grewal welcomed the move to drop the case, making it a new day for the US digital assets. He acknowledged the input of Commissioners Peirce and Uyeda in the swift action to ditch the misguided anti-crypto campaign to regulate via enforcement.
Priority in Stakeholder Engagement
Peirce refrained from discussing the Coinbase ongoing case and voting stance. Grewal observed that Coinbase now enjoys regular dialogue, unlike in the previous administration when significant challenges hampered communication with the regulator.
Grewal revealed the constant engagement with the SEC, particularly the crypto task force headed by Commissioner Peirce. This is part of the commendable public process that Peirce initiated to collect input on effective regulatory frameworks.
Peirce restated her desire for the stakeholders to engage with the SEC to deliver the comprehensive registration openly. The Commissioner indicated the need for stakeholders to do more than register only for the regulator to shut the door upon their arrival.
In contrast the previous administration was reluctant to accommodate the crypto sector-specific legislation. Often, the Gensler leadership asserted that multiple tokens were securities and hence the need to comply with the existing regulations. As such, Pierce is in support of na ew legal framework to address concerns raised by the crypto community.
Support for Staking?
A proposal that the SEC is considering is the temporary classification of the digital asset coin offers within the non-securities category. Such mandates the issuer to satisfy disclosure requirements and agree not to challenge fraud allegations for future offerings and retroactive actions.
She added that resolving the classification ambiguity is a critical step though a temporary fix as Congress deliberates and the SEC embarks on rule-making.
Peirce emphasized the need for openness to allow staking and options for the ETH exchange-traded funds (ETFs). This statement appears to wade into the filing by the Cboe Global Markets exchange to allow staking inclusion in the ETH ETFs. Staking the digital coins will enable participation in the blockchain operations, earning them passively.