SEC Commissioner Peirce Challenges Broad Blockchain Oversight, Argues Securities Rules Should Target Conduct Not Infrastructure

According to SEC Commissioner Hester M. Peirce, on June 3 at the IC3 Blockchain Camp in Princeton, N.J., the Securities and Exchange Commission should distinguish between blockchain infrastructure and securities market participants when applying regulations. Peirce questioned whether securities rules should directly cover neutral networks, open-source code, validators, developers, and noncustodial tools, arguing that blockchains perform many functions beyond securities transactions. She proposed a framework focusing on asset control, decision-making authority, and custody rather than infrastructure alone. Peirce stated: "Our rules should apply to the blockchain itself" only when it performs traditional securities intermediary functions, not merely because it carries blockchain data. The distinction could protect validators and developers from broker or exchange regulations, while centralized crypto platforms and onchain finance that exercise control over customer assets remain subject to securities oversight.
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