In a pivotal moment for the cryptocurrency industry, Hester Peirce, Commissioner of the U.S. Securities and Exchange Commission (SEC), has openly called for sweeping changes in how the SEC governs digital assets and cybersecurity. Her proposals, announced as part of a new task force she leads at the SEC, mark a significant shift in tone from previous enforcement-heavy policies and offer hope for a more cooperative regulatory approach.
Peirce’s Call for a New Governance Model
Known in crypto circles as “Crypto Mom,” Peirce has long advocated for regulatory clarity and innovation-friendly policies. During a recent appearance at the DC Blockchain Summit and in an interview with The Wall Street Journal, she emphasized the need for a new governance framework that balances investor protection with innovation. She argued that the SEC must stop relying primarily on enforcement actions and instead create clearer rules through transparent and inclusive processes.
“We need to develop a framework that gives industry participants room to innovate while also making sure investors stay protected,” Peirce stated. “Right now, too many people feel like the rules are made behind closed doors, and that has to change.”
A Shift From Enforcement-First to Rulemaking
Under previous leadership, especially during SEC Chair Gary Gensler’s tenure, the Commission used enforcement as its primary tool for regulating the crypto sector. Gensler argued that most crypto tokens meet the legal definition of securities and therefore fall under the SEC’s jurisdiction. His team brought numerous lawsuits against major players, including Coinbase, Ripple Labs, and Binance.
Peirce wants to reverse this trajectory. She believes the SEC should move toward structured rulemaking, giving businesses clear regulatory pathways before launching products or services. Instead of “regulation by enforcement,” she promotes an open comment process, where companies and the public can provide input on proposed rules before the SEC finalizes them.
“We cannot regulate a $2 trillion industry through courtroom battles and settlement headlines,” she said.
The Task Force and Its Mission
The SEC recently formed a new internal task force, with Peirce at the helm, to explore how the Commission can approach both cryptocurrency and cybersecurity governance more effectively. The task force will review the current state of digital asset regulations, identify gaps and inconsistencies, and propose a roadmap for collaborative rulemaking.
Peirce emphasized that this task force won’t create new rules overnight. Instead, it will work to establish principles of transparency, consistency, and stakeholder participation. “We need to rebuild trust between regulators and innovators,” she noted.
The task force includes experts from across the SEC’s divisions, including Trading and Markets, Investment Management, and Corporation Finance, as well as legal scholars and industry advisors.
Industry Welcomes the Change in Tone
Crypto companies have welcomed Peirce’s leadership and the formation of the task force. Over the past two years, industry leaders have criticized the SEC for what they called “ambush enforcement”—where regulators allegedly gave no prior guidance before launching lawsuits.
Brian Armstrong, CEO of Coinbase, one of the firms targeted by SEC litigation, tweeted his support: “This is a step in the right direction. Regulatory clarity is all we’ve been asking for.”
Similarly, Ripple CEO Brad Garlinghouse, who has spent years fighting the SEC in court, expressed optimism. “We hope this signals a move toward rules we can understand—and follow,” he said.
A Cybersecurity Angle Too
Peirce’s task force won’t limit its focus to crypto. Cybersecurity also stands high on the agenda. In recent years, the SEC has adopted more aggressive cyber disclosure rules, requiring companies to report breaches and cyber risks in real time.
Peirce supports cyber transparency but believes the agency should not dictate how companies respond to every breach. Instead, she wants the rules to encourage risk-based assessments rather than impose “one-size-fits-all” mandates.
“Cyber threats evolve quickly,” she said. “Our rules need to evolve with them. We should focus on outcomes, not checkboxes.”
Politics and Pragmatism
Peirce, a Republican and a Trump-era appointee, represents one side of the increasingly partisan split over how to handle crypto regulation. Democrats have largely supported the aggressive posture under Gensler, while Republicans have voiced concerns over government overreach and stifled innovation.
With the SEC now under pressure from both Congress and the courts, Peirce’s more pragmatic, industry-engaged stance could gain momentum. Several lawmakers have introduced bipartisan bills aimed at clarifying the legal status of cryptocurrencies, particularly around whether certain tokens classify as securities or commodities.
Peirce sees her task force’s work as complementary to legislative efforts. “Congress has a role to play,” she said, “but we as regulators need to do our part too. That means listening, adapting, and being transparent.”
What This Means for the Crypto Future
If Peirce succeeds in steering the SEC toward a more inclusive and rules-based approach, the implications could be profound:
- Crypto startups might receive clear guidance on token launches, avoiding costly legal battles.
- Exchanges and custodians could operate with more certainty, knowing which activities require SEC registration.
- Investors would benefit from better disclosures and a more trusted market environment.
- Developers and DeFi platforms could innovate without fear of retroactive enforcement.
Moreover, it could signal to international regulators that the U.S. is finally willing to lead—not punish—in the Web3 and blockchain space.
Challenges Ahead
Despite growing support, Peirce faces significant resistance. Some senior SEC officials still support the enforcement-first model. Others fear that creating formal crypto rules would legitimize projects they view as inherently risky or fraudulent.
Additionally, courts remain divided. While Ripple secured a partial win in 2023, other cases remain unresolved, and legal ambiguity persists. Peirce acknowledges these hurdles but believes transparency and dialogue offer the only long-term solution.
“You can’t regulate innovation out of existence,” she said. “But you can shape it to serve the public good. That’s our job—and we need to do it better.”
Final Thoughts: A Turning Point?
Hester Peirce has long stood as a voice of reason in the increasingly contentious crypto debate. With her leadership of the SEC’s new crypto and cyber task force, the agency may finally begin a transition away from unpredictable litigation and toward principled, predictable governance.
The crypto industry doesn’t ask for special treatment—it asks for rules it can follow. If Peirce succeeds, the SEC could transform from crypto’s adversary into its guide, creating a regulatory environment where innovation and protection thrive side by side.
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