Exploring the Potential Impact of New Plans on Cryptocurrency, as Discussed by SEC Commissioner Hester Peirce
With SEC Chair Gary Gensler and President Joe Biden at the helm, the crypto industry has confronted significant scrutiny, legal disputes, and regulatory obstacles.
However, under the administration of former President Donald Trump, there seems to be a shift towards a more crypto-friendly stance, ushering in a sense of revitalized hope for the sector.
As a signal of changing dynamics, SEC Commissioner Hester Peirce has indicated that the agency is reevaluating its prior punitive measures against cryptocurrency enterprises.
Revisiting the SEC’s Stance on Cryptocurrency
Speaking on this matter in a recent interview with “Bloomberg Crypto” TV, Peirce expressed,
“In recent years, enforcement actions have been utilized as a means to shape regulatory policy, which is somewhat unconventional. We are striving to return to utilizing our alternative methods to formulate policy.”
Furthermore, Commissioner Hester Peirce has put forth her proposal for establishing a specialized team focused on developing a regulatory framework that supports innovation while mitigating fraudulent activities.
This stands in stark contrast to the approach adopted by SEC Chair Gensler.
While legal disputes involving Ripple Labs and Coinbase have origins as far back as 2020 and 2023, a number of them escalated in 2024.
Companies like Uniswap, Ethereum, Consensys, Robinhood, and Crypto.com reportedly received Wells Notices from the SEC, intensifying regulatory tensions.
These enforcement measures sparked heated discussions within the crypto community, with numerous voices calling for the resignation of SEC Chair Gensler.
Despite facing widespread criticism, Gensler remained resolute in his views on cryptocurrency, asserting,
“Cryptocurrency represents a small fraction of our overall markets. However, it disproportionately contributes to scams, frauds, and issues within the markets.”
During his testimony before the House Financial Services Committee in September, Rep. Tom Emmer directly accused Gensler of abusing the SEC’s enforcement authority, stating,
“Your inconsistent actions on this matter have regressed the progress of our country. We have not seen a more historically detrimental or unlawful SEC chairman.”
The Way Forward
On the other hand, Peirce’s steadfast support for Bitcoin [BTC] ETFs and her strong opposition to aggressive enforcement actions have earned her the nickname “Crypto Mom” within the industry.
Despite Trump’s initial doubts, his changing stance on digital assets during his reelection bid implies a more favorable landscape for the sector.
Hence, with the SEC currently reevaluating its legal disputes and regulatory approach, industry insiders are anticipating a potential policy realignment that could reshape the future of cryptocurrency in the United States.