Departing SEC Commissioner Peirce laments delay in shaping U.S. crypto rules

Crypto-friendly U.S. SEC Commissioner Hester Peirce said she still regrets not trying earlier to establish cryptocurrency regulatory policy, The Block reported in an interview ahead of her scheduled departure on Oct. 2. Peirce said the U.S. crypto industry lost a great deal while being tied up in unnecessary regulatory and enforcement battles. She added that it would have been better if both regulators and the industry had directed that energy toward building a sound regulatory framework that better protects investors and developers, which in turn would have created a harsher environment for people seeking to exploit the crypto label for abuse. While the regret remains, Peirce said the experience will serve as an important lesson by showing how long the effects can last, and how many people can be harmed, when policy moves in the wrong direction for an extended period. Peirce also said there are fundamental issues the government needs to address, particularly making developers feel protected. She said developers should be able to focus on research without fearing liability if someone misuses tools they create for illegal activity. Peirce added policymakers should also consider how new cryptocurrency technology can be developed and applied while protecting Americans' personal data more efficiently and effectively, and said she regrets she will no longer be able to take part in those efforts. After nearly nine years at the SEC, Peirce is set to join Regent University School of Law as an associate professor in November.