SEC Commissioner Hester Peirce Signals SEC’s Shift Toward Pro-Crypto Innovation

As the SEC gears up for Gary Gensler’s exit, a pro-crypto transition is anxiously awaited by the crypto community. 

Besides, President Trump has chosen pro-crypto Paul Atkins as a replacement, and with anti-crypto Commissioner Caroline Crenshaw missing her renomination window, only pro-crypto Republicans are expected to remain when the leadership changes in January.

In a recent interview with Coinage, SEC Commissioner Hester Peirce shared insights on how the SEC is shifting from being historically anti-crypto to embracing pro-innovation. She described this period as one of “transition” and “optimism,” signaling a positive change. 

“It’s a time of transition for everyone in Washington right now, and I think that’s the same at the SEC,” Commissioner Peirce said. “There’s still going to be a time of uncertainty because it will take some time before our new Chairman gets here, but there are some things we can do right out of the gate at least get processes started to make some changes,” she added. 

Peirce Optimistic Over Two Key SEC Decisions

Seemingly, Commissioner Hester Peirce is optimistic about revisiting two key SEC decisions on crypto ETFs—allowing in-kind redemptions and enabling Ethereum ETFs to stake assets. She noted that with a new administration, the chances for these changes are now more likely, especially after Chair Gensler steps down in January. 

In-kind redemptions could reduce unnecessary conversions to cash, making the process more efficient. Meanwhile, Ethereum ETFs have raised over $10 billion, and Bitcoin ETFs have over $120 billion in assets. She noted that currently, ETF issuers can only hold crypto assets, while other regions like Europe allow staking for additional yield. Peirce believes that with a pro-crypto majority, these changes could happen soon.

“If it changes from a majority of Commissioners who don’t want things to go through to a majority of Commissioners who do want things to go through, then yeah, it’s easier,” she said, noting that after Chair Gensler steps down on January 20, the road ahead on both points gets decisively more clear. “I imagine that that question is going to be posed to us early on,” she said.

Peirce emphasized the importance of open conversations about crypto, noting that people have been hesitant to engage with the SEC in recent years. She hopes the tone will shift, allowing regulators and the regulated community to work together to find the right way forward.

Notably, Eric Balchunas also reiterated the positive sentiment sharing it in a recent X post.

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Peirce Excited Over Collab With Paul Atkins

Commissioner Peirce expressed excitement about the possibility of fairer crypto regulations and working with Paul Atkins again, who previously served as a Commissioner from 2002 to 2008. Peirce highlighted Paul Atkins for his commitment to due process, transparency, disclosure, and respecting jurisdictional boundaries. She noted that he comes with many years of experience with securities-related issues and there will be many issues on his agenda again besides crypto.

“I would be happy if at the end of 2025, people to get to the point where the regulatory structure is there, they know what the rules are, they’re complying with the rules, but they’re spending their time talking about the technology and its potential. That would make me very happy,” she stated.

She emphasized the importance of having reasonable regulations for innovative asset classes and technologies, allowing freedom for people to make their own decisions. She stressed that “we should never be perceived as being a merit regulator on the negative side or on the positive side.”

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