Hester Peirce
By Geoffrey Lyons
Hester Peirce (aka “crypto mom”) is a Commissioner at the Securities and Exchange Commission (SEC), the U.S. regulatory agency at the forefront of crypto oversight.
She is also Chair of the SEC’s new Crypto Task Force: a unit dedicated to providing regulatory clarity for the industry.
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Hester's to-do list
In a public statement entitled “The Journey Begins”, Peirce laid out 10 objectives for the Crypto Task Force:
Clarify the different types of cryptocurrencies | This is arguably the most important task, since how the SEC defines a cryptocurrency (e.g. whether it’s deemed a security or not) makes a massive difference in how it’s regulated. |
Identify areas outside SEC’s remit | As an initial step, the SEC may provide “no-action” relief to companies while this gets straightened out. |
Offer temporary relief for issuers of new tokens | Many cryptocurrencies are in a gray area where it’s uncertain whether they’re securities or not. The SEC may cut some slack for token issuers until a new rule is in place. |
Make it easier to register new tokens | This would create more “viable paths” for people to register new cryptocurrencies. |
Revamp rules on special-purpose broker-dealers | Special-purpose broker-dealers are simply companies permitted to hold crypto for their clients. The task force wants to expand the types of cryptocurrencies they’re allowed to hold. |
Establish framework for custody solutions | This would provide regulatory clarity for investment advisers who want to securely hold crypto for their clients. |
Clarify crypto staking and lending | Currently there is no universal rule for how staking (locking up crypto to support a network) and lending (loaning crypto to earn interest) should be regulated. |
Refine crypto ETFs | This would establish a consistent approach for approving, disapproving, and modifying crypto exchange-traded products. |
Modernize clearing and settlement | “Clearing” is simply the process by which financial trades settle. For this task, Peirce and colleagues will work with companies wanting to tokenize traditional financial products. |
Launch a cross-border sandbox | This would facilitate experimentation for crypto companies that operate in multiple countries. |
Mama bear
Peirce earned the "crypto mom" moniker in 2018 after she publicly opposed the SEC's rejection of a Bitcoin ETF. “I always wanted to be a mother,” she later said in a speech. “If I were, I suspect that I would be a free-range mother rather than a helicopter mom.”
The allusion to her regulatory approach is obvious: Peirce supports light-touch regulation that fosters “maximum opportunity” for experimentation. The overbearing helicopter mom approach stifles growth and “dampens innovation.”
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