Bankless: Hester Peirce discusses five major concerns in the crypto industry

Author: Jack Inabinet, Bankless; Translated by: Deng Tong, Golden Finance

President Trump made a major commitment to cryptocurrency during his campaign. With Gary Gensler's departure and the SEC's change, his administration is ready to carry out the agenda through the clarity of digital asset regulation.

In our latest episode, SEC Commissioner Hester Peirce, an outspoken advocate for digital asset freedom and regulatory constraints, discusses the impact of changing institutional leadership on the future of cryptocurrencies.

On the first day of the Trump administration, Commissioner Peirce was appointed head of the SEC's newly formed cryptocurrency task force, and its first step was to revoke SAB 121, a controversial accounting policy that restricts financial institutions from providing cryptocurrencies Hosting services.

While Gary Gensler’s ongoing cryptocurrency lawsuits have traumatized industry players and hindered their engagement with U.S. regulators, Commissioner Peirce hopes to build healthy relationships with cryptocurrency projects and to maintain a practical solution to regulation Encourage experiments.

We didn’t get all the answers, but it’s certainly refreshing to hear a leading cryptocurrency regulator finally approaching the industry! Here is Hester's response to five pressing issues in the cryptocurrency industry.

1. Token regulation clarity

One of the biggest changes is the possibility of retroactive regulatory relief for token issuers. Peirce outlines a roadmap through which projects that issued tokens in the past could gain legal clarity by providing disclosure and consent to certain conditions.

Over the years, the SEC's radical stance on tokens has hampered transparency, leaving many projects concerned that disclosures could be detrimental to them in future enforcement actions. Commissioner Peirce hopes to turn this around by encouraging voluntary disclosure.

2. Letter of no action

Peirce discussed the non-action letter process, which allows companies to request an official statement from the SEC confirming that specific activities do not lead to law enforcement actions.

The SEC continues to solicit opinions from the crypto industry on how these processes should work, as it did under Gensler.

III. Securities Law and Cryptocurrency

Historically, being labeled with securities means a death penalty for U.S. crypto tokens due to regulatory burdens. But is this necessary?

Peirce acknowledged that while some crypto assets clearly comply with securities laws, the industry needs new frameworks to adapt to decentralized networks.

She also talked about meme coins, pointing out that just because something is popular doesn’t necessarily mean it is a security, but she warned individuals not to think that the SEC (or any regulator) will provide security for those who are speculating net.

4. Airdrop and retail investors' visits to cryptocurrencies

Crypto projects often exclude U.S. citizens from airdrops because they fear U.S. citizens may be involved in legal disputes with securities regulators.

While Peirce Commissioner did not give clear answers to the airdrop issue, she said the SEC is developing clearer guidelines and encourages projects to submit programmes to the cryptocurrency working group so they can better understand industry needs.

Additionally, Peirce expressed willingness to modernize U.S. financial regulations and expand access to private markets through new investor certification standards.

V. The relationship between SEC and CFTC

Under the previous leadership, the SEC and CFTC have fought for almost any agency to regulate cryptocurrencies. Peirce expressed optimism that this would change, stressing that cooperation among regulators is now a priority.

Peirce commissioners hope regulators can work together to create a framework that is truly suitable for the cryptocurrency market, rather than seeking judicial dominance.