SEC Commissioner Hester Peirce Admits Past Crypto Policies Were "Wrong in Method"

Gate News message, April 21 — SEC Commissioner Hester Peirce, known as “Crypto Mom,” acknowledged in an interview that the agency’s approach to cryptocurrency regulation during former Chairman Gary Gensler’s tenure was flawed. “I think we took the wrong approach in the past. While some intentions were good, the execution wasn’t right, and that’s why we wasted time,” Peirce said.

Peirce criticized the lack of early regulatory framework, noting that establishing clear guidelines from the outset would have accelerated industry development. He stated the SEC should have engaged more extensively with industry stakeholders before implementing policies, rather than taking unilateral action. “If we had established a framework from the very beginning, we could be in a much more productive place today,” he added.

On regulatory scope, Peirce emphasized that the SEC must recognize the limits of its jurisdiction. “Just because there’s a problem doesn’t necessarily mean it’s ‘my problem.’ Congress doesn’t want us to overstep our jurisdiction,” he said. He cautioned investors about non-security crypto assets such as memecoins, warning that SEC protections do not extend to these holdings: “I want people to be alert because our regulatory regime isn’t there to support them.”

Looking ahead, Peirce highlighted key areas for future focus, including stablecoin integration, tokenization of money market funds, real-world asset (RWA) tokenization, and custody frameworks. With his term ending at year-end, Peirce noted his successor will inherit a “very broad and interesting agenda” centered on transparency and disclosure.