Hester Pierce, a commissioner at the U.S. Securities and Exchange Commission (SEC), has outlined potential improvements to cryptocurrency regulations under Donald Trump‘s incoming administration. According to a December 10 tweet from Fox Business journalist Eleanor Terrett, Pierce, often called “Crypto Mom,” shared her views in an interview with Liz Claman on The Claman Countdown. She emphasized the need for more regulatory clarity to foster growth and stability in the crypto sector.
In her interview, Pierce proposed reforms to eliminate government overreach, ensure fair access to services for crypto users, and clarify the SEC’s jurisdiction over digital assets. These changes, she noted, could provide the crypto industry with a clearer path forward under Trump’s leadership.
Regulatory reforms to provide clarity
Pierce called for a clear distinction between cryptocurrencies that fall under SEC jurisdiction and those that do not. She argued that the need for more clarity has hindered the crypto market’s ability to comply with appropriate regulations. The industry could more effectively navigate federal oversight by specifying which digital assets are considered securities.
NEW: @SECGov Commissioner @HesterPeirce just alluded to “Operation Chokepoint 2.0” in her interview with @LizClaman on @FoxBusiness and also outlined the 3 things she thinks need to be done under @realDonaldTrump’s new SEC to help give the #crypto industry some clarity. 1.…
— Eleanor Terrett (@EleanorTerrett) December 9, 2024
She also addressed what she described as “government chokepoints” in the crypto regulatory space, referring to practices restricting crypto holders’ access to essential financial services, such as custody. Pierce insisted that allowing these services to operate freely would strengthen the industry’s infrastructure.
The commissioner also suggested that reforms under Trump’s administration should include input from all stakeholders, including public contributors. She underscored the importance of creating an environment where open discussion on regulatory adjustments can thrive, ensuring that all voices in the industry are heard.
Pierce comments on SEC oversight challenges
While Pierce emphasized that her opinions do not reflect the official stance of the SEC, she has consistently criticized the agency’s approach to regulating cryptocurrencies. During Gary Gensler’s tenure as SEC chair, she expressed concerns over the lack of public engagement in forming crypto-related policies.
With Gensler set to step down in January, President-elect Trump has already announced plans to appoint Paul Atkins as the next SEC chair. In addition, Trump’s administration has created a new “crypto czar” position to oversee cryptocurrency and artificial intelligence regulations. David Sacks has been named the first appointee to this role, bypassing previous expectations that former CFTC chair Christopher Giancarlo might take the position.
Industry reaction and broader implications
The crypto community responded to Pierce’s comments with mixed reactions. While some expressed optimism about her proposed reforms, others questioned the SEC’s suitability as a crypto regulatory body. Some suggested that the Commodity Futures Trading Commission (CFTC) should be more prominent in crypto oversight.
A bipartisan bill recently introduced in Congress aims to address these concerns by allowing the SEC and the CFTC to regulate the crypto industry jointly. However, the debate over which agency best suits this responsibility remains ongoing.
Despite scepticism from some quarters, Pierce’s call for reforms highlights the ongoing challenges and opportunities for cryptocurrency regulation in the U.S. under new leadership. As Trump’s administration prepares to take charge, the industry and its stakeholders will closely watch the direction of these reforms.
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