Hester Peirce Charts New Course for Crypto Oversight Under SEC’s Revamped Task Force

SEC Commissioner Hester Peirce, long known as “Crypto Mom,” has unveiled a fresh regulatory approach for the digital asset industry, signaling a shift from the watchdog’s past enforcement-heavy stance. In a recent letter, Peirce criticized the previous administration’s handling of crypto regulation and laid out a roadmap for a more structured framework under the SEC’s new crypto task force.

Peirce, appointed to lead the initiative last month, acknowledged the challenges ahead, stating that reshaping crypto oversight would take time. “It took us a long time to get into this mess, and it is going to take us some time to get out of it,” she wrote. However, she expressed optimism that the new approach would offer a more stable and predictable regulatory environment compared to the turbulence of the past decade.

Under the Biden Administration, the SEC aggressively pursued legal action against major U.S. crypto firms, with former Chair Gary Gensler arguing that most digital assets qualified as securities. Critics—including industry leaders and Peirce herself—contended that this amounted to “regulation by enforcement,” creating uncertainty rather than clarity.

Now, under the Trump Administration, the SEC is expected to take a less combative stance. President Trump, advocating for deregulation, has openly supported the industry, even launching his own Solana-based meme coin ahead of his inauguration. Peirce’s letter emphasized that the task force is actively working to refine the classification of digital assets, provide clear pathways for token issuers, and determine how crypto lending and staking fit within the SEC’s jurisdiction.

The commissioner also highlighted the growing interest in new crypto exchange-traded funds (ETFs). Following the approval of Bitcoin and Ethereum ETFs in 2024, the SEC is now reviewing applications for funds tied to XRP, Solana, Dogecoin, and more. Additionally, proposals are being considered for ETFs that incorporate staking rewards. Peirce assured that future approvals or rejections would come with greater transparency, addressing concerns over past inconsistencies.

Beyond ETFs, the SEC’s crypto task force aims to engage with market participants exploring blockchain applications in traditional finance, including tokenized securities. The agency is also working on new custody regulations for investment advisers handling crypto assets.

To encourage open dialogue, the task force has launched a dedicated email—crypto@sec.gov—where industry stakeholders can submit feedback. Peirce’s announcement marks a clear effort to reshape how the SEC interacts with the crypto sector, moving from reactive enforcement to proactive regulation in an evolving financial landscape.