SEC Commissioner Hester Peirce to Lead New Crypto Initiative
Date: 2025-01-22 Author: Gabriel Deangelo Categories: IN WORLD
The initiative will be led by Hester Peirce, who has been known for her criticism of the agency’s current practices.
Interim SEC Chair Mark Uyeda announced the group’s creation, citing criticism from the crypto industry. The agency has previously faced accusations of overreliance on “enforcement regulation,” which has caused discontent among market participants.
Until now, the SEC’s work has often been limited to reactive measures that have not provided a long-term approach or clear standards for crypto firms. In a statement, the SEC noted that there was a lack of transparency around registration requirements and enforcement mechanisms, creating uncertainty for companies seeking to comply with the law.
The creation of this group marks a change in the SEC’s work following the departure of its former chairman Gary Gensler. Gensler has repeatedly emphasized that most cryptocurrencies should be treated as securities and has urged companies to register with the agency. However, crypto firms have argued that the current regulations are only suitable for traditional financial institutions and cannot be adapted to digital assets.
Mark Uyeda has criticized previous methods of regulating cryptocurrencies as a failure and said that the industry needs clear guidance. Hester Peirce, in turn, has proposed a “safe harbor” initiative that would allow developers to launch blockchain projects without immediately having to comply with strict securities laws. Her proposals include a three-year period during which innovators could focus on developing their ideas without fear of being held accountable.
This new group will be an important step towards creating a balanced regulatory system that will allow the SEC to effectively interact with the rapidly evolving digital asset market.
