SEC Commissioner Hester Peirce Says Crypto Tokens Not Securities Amid Capital Formation, Existential Risks

Sep 24, 2024, 02:42 PM

During a recent hearing with the House Financial Services Committee (HFSC), SEC Commissioner Hester Peirce made significant remarks regarding the regulation of digital assets. Peirce stated that the SEC should have admitted long ago that crypto tokens are not securities. This statement comes amid growing concerns about the SEC's regulatory approach, which many believe is driving innovation and capital formation overseas. The Financial Services Committee, led by Rep. Patrick McHenry, is advocating for clearer regulations to ensure that the U.S. remains competitive in the digital asset industry. The hearing included all five SEC commissioners and highlighted the need for regulatory clarity and consumer protections to prevent the U.S. from falling behind Europe in technological innovation and adoption. The digital asset industry is facing existential risks due to the SEC's overreach, and it is imperative that the Committee act before the SEC succeeds in driving this innovative sector out of the United States altogether.