Commissioner Hester Peirce of the United States Securities and Exchange Commission (SEC) has expressed her support for increased decentralization in the country’s financial system, as well as a more lenient approach to regulating and enforcing cryptocurrencies.
Peirce, who is often referred to as “Crypto Mom,” made these remarks during a fireside chat with CNBC’s MacKenzie Sigalos at the ETHDenver conference on February 29. She highlighted the benefits of decentralization for the U.S. financial system, noting that centralization carries concentrated risks.
Peirce, a former lawyer, was appointed to the SEC by former President Donald Trump in 2018. She has gained a reputation for supporting the cryptocurrency industry and challenging excessive regulation of digital assets.
During the discussion, Peirce expressed concerns about proposed legislation that would classify decentralized technologies, such as network nodes, validators, noncustodial wallets, mining pools, and blockchain software, as financial institutions. She emphasized the confusion surrounding the registration requirements for these entities.
The conversation also touched on the broker/dealer rule and its potential impact on decentralized finance (DeFi), decentralized exchanges, and developers. Peirce acknowledged the challenges faced by the SEC in regulating interactions with code rather than with individuals or entities.
Furthermore, Peirce stated that it is not necessarily the SEC’s role to fully embrace and understand cryptocurrencies. She argued that the SEC should allow projects to grow and achieve decentralization without the fear of legal action, as the agency has recently adopted rules that subject more market participants to registration and compliance with federal securities laws.
In addition to discussing these topics, Peirce addressed the future of the SEC following the upcoming U.S. presidential election, the potential for spot Bitcoin exchange-traded funds, and the implications of central bank digital currencies and increased financial surveillance.
Overall, Peirce’s remarks at the ETHDenver conference emphasized the need for a more decentralized financial system and a balanced approach to regulating cryptocurrencies.