- Hester Peirce urges an end to government tactics restricting crypto services access.
- She advocates for clear distinctions on securities within the SEC’s scope.
- Collaboration with the crypto sector on public rule-making is crucial, says Peirce.
SEC Commissioner Hester Peirce criticized what she referred to as ‘Operation Chokepoint 2.0,’ a regulatory chokehold stifling the crypto industry. In an interview with Fox Business, Peirce outlined three steps to bring clarity and fairness to crypto regulations under Donald Trump’s anticipated SEC leadership.
Peirce urged regulators to end government actions blocking crypto companies from accessing essential services, such as custody. “Step one is to stop this approach of trying to prevent crypto from getting access to the services that it needs to move forward,” she said.
She further advocated for establishing clear boundaries that separate what falls outside the SEC’s jurisdiction. This, she explained, would offer much-needed certainty to businesses and consumers alike. Peirce also called for collaborative efforts between regulators and the crypto sector to determine how existing rules apply and where changes are necessary. “It needs to be done in public so that everyone can participate,” she added.
David Sacks Supports Peirce’s Stance
Peirce’s concerns resonate with remarks from David Sacks, the newly appointed White House Crypto Czar, who has called for an investigation into Operation Choke Point 2.0. Sacks highlighted the harm caused by these regulatory practices, describing multiple instances where crypto entities have faced significant obstacles.
“There are too many stories of people being hurt by Operation Choke Point 2.0. It needs to be looked at.”
Critics argue that Operation Chokepoint 2.0 mirrors the original Operation Choke Point, where regulators restricted banking services to industries deemed “high-risk.” The latest iteration is said to target the crypto industry specifically, cutting off companies from critical banking infrastructure and stifling innovation.
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