SEC Crypto-Friendly Commissioner Hester Peirce Voices Support for Crypto ETF: One of the Choices Consumers Should Have

U.S. Securities and Exchange Commission (SEC) commissioner Hester Peirce, known for her friendly stance towards the cryptocurrency industry, recently spoke about cryptocurrencies in an interview with DL News. She referred to them as "choices that American consumers have," urged the SEC and the Commodity Futures Trading Commission (CFTC) to each take a step back in their regulatory responsibilities, and expressed support for the future launch of more cryptocurrency ETFs.

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Hester Peirce: Stop Calling Me 'Crypto Mom'

Known as the "crypto mom" of the SEC, Hester Peirce openly discusses crypto innovation in an interview:

I see cryptocurrencies as an option that American consumers should be able to choose for themselves.

However, she also expresses her objection to the title of "crypto mom," stating, "I am not your mother."

Trump May Change the US Crypto Regulatory Stance

Regarding the upcoming US election, Peirce believes that if there is a change in political party, SEC Chairman Gary Gensler's term may end earlier:

When there is a change in the president, the SEC chairman usually changes as well.

Speculations that if Trump were to be elected president, Peirce might become the next SEC chairman were not discussed by her.

However, if this were to happen, it is expected to bring clearer regulations for crypto companies.

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SEC and CFTC Should Collaborate

Peirce attributes the successful passage of the "FIT21 Cryptocurrency Market Act" through the House of Representatives to the US election, stating that the rapid advancement of crypto legislation by Congress is a means for politicians to attract crypto votes, empowering the CFTC with more regulatory authority over the crypto market.

Regarding the responsibility division between the SEC and CFTC on whether cryptocurrencies are commodities or securities, she believes there should not be competition between the two agencies:

We need to take a step back and remember that we are all here to serve the American people and the market. We should consider who is better suited for A and who is better suited for B.

She also adds, "Many things in the crypto market are completely different from the financial market, including the decentralized infrastructure that does not fit into the traditional legal framework of finance."

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LBRY, Stoner Cats Are Pain Points

Peirce mentions several lawsuits brought by the SEC against crypto companies during her tenure, highlighting a few cases that troubled her the most.

She first points out the victory of the blockchain-based YouTube alternative LBRY, stating that they did meaningful work but were ultimately forced to shut down through litigation:

Specifically, this was a violation for not registering under securities laws, and did not involve fraud, so the charges, in my view, were problematic.

She also finds the lawsuit against Stoner Cats quite arbitrary, as the logic of the accusations could be applied to almost all non-digital collectibles.

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Peirce admits that despite Chairman Gensler repeatedly emphasizing that crypto companies can operate normally if they register with the SEC, they actually find it challenging to get assistance from regulatory agencies.

Crypto ETFs Should Not Be Targeted

Lastly, regarding the eagerly anticipated Ethereum ETF by investors, Peirce believes that crypto ETFs should be treated equally with ETFs in other financial markets:

We just need to compare them to other products, apply consistent rules, and review the facts and circumstances of each application.

She states that the decade-long saga of the Bitcoin ETF, which has been tossed back and forth with the issuers, has been frustrating for her, as the court has essentially ruled that the SEC must allow the ETF.

However, Peirce emphasizes that SEC approval does not mean the product is safe:

Investors should make investment decisions based on their own situations and needs, rather than relying on guidance from regulators.

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