SEC Considers New Crypto Regulation Strategy Amid Binance Litigation

SEC Commissioner Hester Peirce is advocating for a shift in the agency's regulatory approach to cryptocurrency, moving away from an enforcement-heavy strategy towards a more structured regulatory framework. In recent interviews, Peirce highlighted that the SEC has used enforcement actions atypically to shape policy, signaling a desire to utilize other regulatory tools. The agency's request to pause litigation against Binance, which it had sued for mishandling customer funds, underscores this new direction as the SEC seeks to establish clearer guidelines for digital assets. Peirce, leading a crypto task force, aims to determine which cryptocurrencies qualify as securities and clarify the SEC's jurisdiction. She has emphasized the importance of evaluating cases individually and has called for innovation-friendly policies that allow experimentation within existing regulatory frameworks. Peirce's stance has garnered support from the digital-asset community, earning her the nickname 'Crypto Mom.'