US Securities and Exchange Commissioner (SEC) Hester Peirce has recently emphasized the need for a shift in the regulatory approach towards crypto, signaling a departure from the aggressive enforcement strategies of the past years. 

In a recent interview on “Bloomberg Crypto,” Peirce discussed the SEC’s ongoing review of its enforcement actions against crypto firms, highlighting the atypical use of enforcement cases to shape regulatory policy.

SEC’s Hester Peirce Advocates For Policy Reform 

“During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical,” Peirce stated. “We’re trying to get back to a path where we’re really using our other tools to make policy.” 

The SEC’s recent request to pause litigation against Binance, the world’s largest cryptocurrency exchange, further illustrates this shift. The commission had previously sued Binance and its co-founder, Changpeng “CZ” Zhao, in 2023, alleging that the platform mishandled customer funds and violated securities laws. 

The SEC is now seeking a 60-day stay in the lawsuit, citing the ongoing development of a regulatory framework for digital assets. Peirce refrained from commenting on the potential outcomes of the lawsuit, emphasizing the need for a case-by-case evaluation.

Peirce is now leading a crypto-focused task force within the SEC aimed at developing a “comprehensive and clear” regulatory framework. Among her objectives are determining which digital assets qualify as securities and identifying areas that fall outside the SEC’s jurisdiction. 

Peirce’s previous efforts have garnered praise from the digital-asset community, particularly for her support of Bitcoin exchange-traded funds (ETFs) and her dissenting opinions on various SEC enforcement actions, earning her the nickname “Crypto Mo

Go to Source to See Full Article
Author: Ronaldo Marquez