Bankless: Hester Peirce on the five biggest concerns of the crypto industry

Author: Jack Inabinet, Bankless; Translator: Deng Tong, Golden Finance

President Trump made big promises about cryptocurrency during his campaign. With the departure of Gary Gensler and a change of leadership at the SEC, his administration is ready to deliver on that agenda with clarity on digital asset regulation.

In our latest episode, SEC Commissioner Hester Peirce, an outspoken advocate for digital asset freedom and regulatory restraint, joins David Hoffman to discuss the impact of changing agency leadership on the future of cryptocurrency.

On the first day of the Trump administration, Commissioner Peirce was named head of the SEC’s newly formed Cryptocurrency Task Force, and one of her first steps was to rescind SAB 121, a controversial accounting policy that restricted financial institutions from offering cryptocurrency custody services.

While Gary Gensler’s ongoing cryptocurrency lawsuits have traumatized industry players and discouraged their engagement with U.S. regulators, Commissioner Peirce hopes to foster a healthy relationship with cryptocurrency projects and encourage experimentation through practical solutions to maintaining regulation.

We don’t have all the answers, but it was certainly refreshing to hear a leading cryptocurrency regulator finally engage with the industry! Here are Hester’s responses to five pressing issues facing the cryptocurrency industry.

I. Regulatory Clarity for Tokens

One of the biggest shifts is the potential for retroactive regulatory relief for token issuers. Peirce outlined a roadmap by which projects that have issued tokens in the past can gain legal clarity by providing disclosures and agreeing to certain conditions.

For years, the SEC’s aggressive stance on tokens has hindered transparency, leaving many projects concerned that disclosures could be used against them in future enforcement actions. Commissioner Peirce hopes to reverse that by encouraging voluntary disclosures.

II. No-Action Letters

Peirce discussed the no-action letter process, which allows companies to request an official statement from the SEC confirming that specific activities will not result in an enforcement action.

The SEC continues to seek input from the crypto industry on how these processes should work, as it did under Gensler’s leadership.

3. Securities Laws and Cryptocurrencies

Historically, being labeled a security has meant a death sentence for crypto tokens in the U.S. due to regulatory burdens. But does it have to be this way?

Peirce acknowledged that while some crypto assets clearly fall under securities laws, the industry needs new frameworks to accommodate decentralized networks.

She also touched on meme coins, noting that just because something is popular doesn’t necessarily mean it’s a security, but she warned individuals not to assume that the SEC (or any regulator) will provide a safety net for those who speculate.

4. Airdrops and Retail Access to Cryptocurrencies

Crypto projects often exclude U.S. citizens from airdrops because they worry that they could get involved in legal disputes with securities regulators.

While Commissioner Peirce didn’t give a definitive answer on the airdrop question, she said the SEC is working on clearer guidelines and encouraged projects to submit proposals to the Cryptocurrency Working Group so they can better understand industry needs.

In addition, Peirce expressed his willingness to modernize U.S. financial regulations and expand private market access through new investor certification standards.

V. Relationship between SEC and CFTC

Under previous leadership, the SEC and CFTC almost engaged in a power struggle over which agency would regulate cryptocurrencies. Peirce expressed optimism that this situation will change and emphasized that cooperation between regulators is now a priority.

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