SEC Commissioner Hester Peirce: Don’t ‘Swipe Left’ on Crypto

SEC Commissioner Hester Peirce recommended not ignoring crypto in a speech at the Duke Conference. She believes the industry also needs to self-regulate to some degree.

United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce has once again made positive headlines in the crypto world. Peirce, affectionately known as “Crypto Mom”, spoke at a conference on digital assets at Duke University.

Pierce says that the incidents of the past year offer important lessons for the future. She clarified that the position belonged to her and did not represent the SEC and its other members.

Among the main points she made was that “Crypto’s value proposition depends primarily on the builders of this technology, not regulators like me, who lack technical expertise and stick to the periphery. .” As such, she thinks industry players shouldn’t wait for regulators to fix problems. She says privately designed and voluntarily implemented solutions can work better to achieve this goal.

She also points out that the purpose of crypto is not to make a profit through trading, but to solve trust issues through technology. In other words, she suggests focusing on interesting use cases.

Towards the end of her talk, she says that “rather than sweeping left on crypto, we should remember that new technologies sometimes take a long time to find their footing.” Instead, she recommends allowing experimentation with the technology and not letting strict regulation get in the way.

Hester Peirce doesn’t think the Howey test can be applied easily

Peirce has made several points about crypto regulation over the years. She was clear about her position on crypto bailouts, saying she wouldn’t support it, especially if the company was overleveraged. However, she said the the crypto market had matured a bit back in 2021.

Peirce also disagrees with the current approach to regulation, saying the agency’s monetary approach is not bona fide. She also sees problems in the application of the Howey test to crypto assets, pointing out that the nuances of a crypto test do not readily lend themselves to testing.

Gary Gensler considers checks necessary

Peirce’s takes a somewhat significant contrast to the positions of SEC Chairman Gary Gensler. He is adamant about the need for controls and has sworn to crack down on non-compliant crypto companies.

people said that FTX’s collapse was part of a pattern in the industry of these companies borrowing client funds to invest without proper disclosure. He also thinks that crypto exchanges are highly centralized.


BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

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