US Securities and Exchange Commissioner Hester Peirce says the Wall Street watchdog is taking a close look at cases it has brought against crypto firms as it tries to strike a new tone on regulating digital assets.
“During the past several years, enforcement cases have been used as a way to make regulatory policy; that is very atypical,” Peirce said Tuesday during a “Bloomberg Crypto” TV interview. “We’re trying to get back to a path where we’re really using our other tools to make policy.”
The SEC on Monday filed a request to pause litigation against Binance, the world’s largest crypto exchange. The regulator sued Binance and co-founder Changpeng “CZ” Zhao in 2023, alleging the firm mishandled customer funds, misled investors and regulators and broke securities laws.
The SEC asked for a brief stay of 60 days, citing pending development of a regulatory framework for digital assets.
During Tuesday’s interview, Peirce declined to say whether the SEC would drop the lawsuit entirely, saying she couldn’t discuss specific cases. She said the agency would need to “untangle” cases against crypto companies but didn’t didn’t say if it would pause or drop other crypto cases. For example, the agency in 2023 sued Coinbase Global Inc., accusing it of running an illegal exchange.
“It’s facts and circumstances,” she said. “We’ll have to look at each case on its merits as we go forward.”
Under the Trump administration, the SEC is expected to take a U-turn on crypto regulation. President Donald Trump once called digital assets highly volatile and “based on thin air,” but he embraced the industry as he campaigned for his second term.
Within days of taking office, Trump signed an executive order establishing a group to advise on crypto policy. He is also considering a national crypto stockpile, a move that could boost asset prices and lend the industry legitimacy.
Peirce is helming a crypto-focused task force at the SEC to create a “comprehensive and clear” framework to regulate the market. Last week, she laid out some of her goals for the group — which include determining which digital assets are securities and what areas fall outside the regulator’s jurisdiction.
The Republican commissioner has drawn praise from the digital-asset industry for her support of Bitcoin exchange-traded funds and her dissents on SEC crypto enforcement actions, earning her the nickname “Crypto Mom.”
Source: Bloomberg
