SEC’s Hester Peirce Pushes for Fresh Crypto Policies, Stresses ‘Stop the Chokepoint’

Key Takeaways

• SEC Commissioner Hester Peirce advocates for an end to the “chokepoint” against the crypto industry.
• Pierce proposes a three-point solution to bring clearer regulations to the crypto space.
• Former President Donald Trump has appointed several pro-crypto figures to key administrative roles.

Securities and Exchange Commission (SEC) Commissioner Hester Peirce has called for fresh, clearer regulations on the crypto industry, stressing the need to stop choking crypto companies.

In a recent interview with Fox News, Pierce emphasized the need for a more transparent regulatory framework to help the crypto industry thrive.

Hester Peirce’s Three-Point Solution

“We need to stop this approach of trying to prevent crypto from getting access to the services it needs, like custody, to move forward,” Peirce said, referencing the obstacles crypto firms face in accessing traditional banking services.

The SEC commissioner outlined a three-point approach to bring clarity and structure to the crypto industry.

First, she urged the incoming administration to “stop the chokepoint,” likely alluding to “Operation Chokepoint 2.0.”

The SEC commissioner argued that regulators have unfairly restricted access to essential banking services for crypto firms. Peirce stressed that crypto companies need access to services like custody to operate effectively and grow.

Second, she called for a clear delineation of responsibilities between regulatory agencies, emphasizing the need to clarify which aspects of the crypto market fall outside the SEC’s jurisdiction.

According to Peirce, defining what is not a security would allow market participants to operate with greater confidence without being forced to navigate the SEC’s complex and often ambiguous regulatory framework.

Finally, Peirce proposed that regulators and crypto companies collaborate to understand how existing rules apply to the sector and where adjustments might be necessary.

She argued that this process should be public and inclusive, helping the industry move forward in a way that ensures everyone’s voice is heard.

Peirce has long advocated for clearer regulations and repeatedly warned against the SEC’s overreach.

Her remarks underscore the growing frustration in the crypto industry, which has been navigating inconsistent and sometimes contradictory regulations for years.

Trump’s Pro-Crypto Agenda and Regulatory Shifts

With Donald Trump’s imminent return to the White House in January 2025, many in the crypto industry are hopeful for a shift in regulatory policy.

Trump, who has garnered significant support from the crypto community, has promised to reverse what many perceive as the current administration’s hostile stance on digital assets.

As part of his pro-crypto agenda, Trump has already nominated several figures sympathetic to the crypto cause for key positions in his administration.

Among his picks is Paul Atkins for SEC chair and Scott Bessent as Treasury Secretary. Both are well-known for their support of the crypto sector.

Sources now suggest that the Trump administration may seek to appoint the Commodity Futures Trading Commission (CFTC) as the primary regulator for crypto markets.

This could help define the industry’s oversight and limit the SEC’s reach.

As Trump prepares to take office, the crypto industry is optimistic that these regulatory shifts will create a more favorable environment for innovation and growth.