SEC to Ease Crypto Regulations, Peirce Announces

• Lyla Velez
• May 31, 2025
• Uncategorized
• 0 Comments

Hester Peirce, SEC Commissioner, announced at Bitcoin 2025 that the agency will reduce active regulation in the crypto space, opting for rule development through industry collaboration.

The announcement marks a shift towards less stringent regulation, potentially attracting more institutional players to the crypto market.

Hester Peirce, often referred to as “Crypto Mom,” highlighted at Bitcoin 2025 the SEC’s strategic shift towards industry engagement over aggressive enforcement. Regulatory uncertainty under previous approaches led to challenges in distinguishing between legitimate and fraudulent actors.

Peirce pointed out that lessening regulatory pressures could deter bad actors while providing a conducive environment for legitimate developers. Her approach suggests a future focusing on clear industry guidelines.

Hester M. Peirce, U.S. Securities and Exchange Commissioner, noted, “One complaint I’ve had is that in an environment of regulatory uncertainty, it’s much harder to identify bad actors—and it gives them more room to operate. Meanwhile, it pushes legitimate actors out of the U.S. or out of the industry entirely. We need to create a good environment for the good actors and a bad one for the bad actors” – source

Markets responded optimistically to the SEC’s renewed posture, anticipating increased crypto adoption in the U.S. Yet financial and business communities await detailed regulatory frameworks to optimize operations.

Peirce’s statements allude to a potential reducing enforcement focus by the SEC. With past regulatory moments in mind, such as ETF decisions, this move may bolster U.S. crypto positions.

Historical trends, like previous SEC guidance shifts, emphasize the potential benefits of a collaborative regulatory approach. This involves industry consultation, potentially enhancing both technological advancement and substantial market growth.