SEC Commissioner Hester Peirce Signals SEC’s Shift Toward Pro-Crypto Innovation
The crypto community is anxiously awaiting the cryptocurrency transition as the U.S. Securities and Exchange Commission (SEC) prepares for Gary Gensler’s exit.
Additionally, President Trump has chosen pro-crypto Paul Atkins as his successor, while anti-crypto Commissioner Caroline Crenshaw missed her renomination window and is expected to When leadership changes in January, only pro-cryptocurrency Republicans will remain.
in the most recent interview SEC Commissioner Hester Peirce shared insights with Coinage about how the SEC is moving from its historical opposition to cryptocurrencies to supporting innovation. She describes this period as “transitional” and “optimistic”, marking positive change.
“This is a transitional time for everyone in Washington, and I think the SEC is as well,” Commissioner Pierce said. “There will still be a period of uncertainty because it will take some time before our new chair comes in, but there are things we can do immediately to at least get the process started to make some changes,” she added.
Peirce optimistic about two key SEC decisions
It appears that Commissioner Hester Peirce is optimistic about revisiting two key SEC decisions regarding crypto ETFs – allowing physical redemptions and allowing Ethereum ETFs to pledge assets. She noted that with the new administration in place, the opportunity for those changes is now more likely, especially after Chairman Gensler stepped down in January.
In-kind exchanges can reduce unnecessary cash exchanges, making the process more efficient. Meanwhile, the Ethereum ETF has raised more than $10 billion and the Bitcoin ETF has more than $120 billion in assets. She noted that currently ETF issuers can only hold crypto assets, while other regions such as Europe allow staking for additional yields. Pierce believes that with the majority of people supporting cryptocurrencies, these changes may happen soon.
“If things go from a majority of commissioners not wanting something to pass to a majority of commissioners actually wanting something to pass, then yes, it would be easier,” she said, noting that after Chairman Gensler stepped down in January, the two At this point, the road ahead becomes clearer. “I think that question will be raised with us early on,” she said.
Peirce stressed the importance of public dialogue about cryptocurrencies, noting that people have been hesitant to engage with the SEC in recent years. She hopes the tone will shift, allowing regulators and the regulated community to work together to find the right way forward.
Notably, Eric Balchunas also reiterated the positive sentiment shared in a recent X post.
Pierce excited about working with Paul Atkins
Commissioner Peirce expressed excitement about the possibility of fairer cryptocurrency regulation and working again with Paul Atkins, who served as commissioner from 2002 to 2008. Peirce emphasized Paul Atkins’ commitment to due process, transparency, disclosure and respect for jurisdictional boundaries. She noted that he has years of experience in securities-related issues and will have many issues on his agenda besides cryptocurrencies.
“I would be happy if, by the end of 2025, people are able to put regulatory structures in place where they know what the rules are and they follow the rules but they take the time to talk about the technology and its potential. That would make me very happy,” she said.
She emphasized the importance of sound regulation of innovative asset classes and technologies, allowing people to freely make their own decisions. “We should never be seen as regulators of performance, either negatively or positively,” she stressed.
