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

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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 Commisioner Hester Pierce 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. 

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.

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.

“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.