Following almost a decade stationed at the U.S. Securities and Exchange Commission, during which she established herself as a prominent voice on virtual asset policy across several presidential administrations, Hester Peirce is concluding her final week at the commission.
Peirce, who staunchly supported the digital asset sector, advocated for regulations as a Republican commissioner under the leadership of SEC Chairs Jay Clayton, Gary Gensler, and currently Paul Atkins. Throughout her tenure, she pressed for increased regulatory transparency, criticized the agency’s strategy when filing enforcement actions against major participants for registration failures, and later established a cryptocurrency task force while endorsing agency staff announcements that clarified staking guidelines.
Her public announcements frequently incorporated an anecdote and gentle humor combined with subtle understatement—offering a distinct contrast to her outspoken stances on oversight. For instance, past speech monikers featured pieces such as ‘Peanut Butter & Watermelon: Financial Privacy in the Digital Age’ and ‘Headstands and Summervaults: A Statement on Crypto Vaults and Lending Strategies.’
On Friday, Peirce published a letter on X directed to President Donald Trump, officially stepping down from the commission. Her departure occurs while advancements regarding the unprecedented comprehensive digital asset bill have stalled in the Senate and remain unlikely to pass into law. In response, the SEC has pushed forward aggressively. The agency recently unveiled its anticipated innovation exemption, following the publication of ‘Regulation Crypto Assets’ and earlier directives addressing the application of federal securities laws to virtual currencies and transactions.
Peirce is transitioning to Regent University School of Law, where she will instruct students in securities law and writing. Prior to her departure, she sat down with The Block last week to discuss her multi-year efforts, regrets, financial surveillance, intermediary obligations, developer safeguards, and whether her future will involve baking sourdough.
The interview transcript below has been adjusted for clarity and shortened for length.
Q: Your final day is October 2 — generally, how are you feeling following the submission of your resignation?
“Well, I submitted the letter earlier this week, so I have had some time to reflect. It is a wonderful characteristic of the American government that public officials come and go, and that a fresh face will take this seat. Consequently, I am thrilled for that incoming individual, and I look forward to observing the commission’s trajectory after my departure.”
Q: You served as an SEC commissioner through both the Biden and Trump administrations. What remains your primary lesson regarding virtual asset regulation, considering the distinct methodologies each administration applied?
“I continue to view it as regrettable that we did not initiate efforts sooner to establish sound cryptocurrency oversight policies, because the domestic industry surrendered substantial ground fighting what I consider avoidable regulatory and enforcement conflicts. That energy from both regulators and market participants could have been channeled into forging a robust regulatory framework that offered superior protections for investors and developers striving to build beneficial technologies in the United States. Such an environment would have proved far less hospitable to bad actors attempting malicious acts or individuals operating merely under the guise of crypto. Therefore, hindsight is twenty-twenty, correct? You cannot reverse the past, but I believe this serves as a valuable lesson for regulators evaluating technology and innovation generally—that the consequences of prolonged regulatory missteps can endure significantly, harming numerous individuals. Hence, I trust future technology oversight will be executed more effectively.”
Q: Reflecting on your tenure, what do you consider the most significant shift in virtual asset regulation achieved by the SEC and yourself?
“Well, the major transformation is that for nearly two years now, a revised strategy has taken hold, centered on establishing regulations proactively. This involves a dedicated focus on collaborating with stakeholders to conceptualize sensible oversight rules, and we have begun registering progress. Extensive effort has been dedicated here at the SEC recently to reach a more productive standing.”
Q: Were there objectives you hoped to accomplish that remained unfulfilled, or do you harbor any regrets?
“Numerous items—you inquired about my feelings regarding leaving, and as I review my active workload, the tasks I hope to finalize this coming week, and the responsibilities spilling over beyond that point, I realize there is never an optimal moment to exit. Additional work always remains. Certain initiatives will persist without your continued involvement because you are leaving. Considerable tasks still lie ahead. We published Reg Crypto and are currently gathering feedback.”
“We also issued transfer agent regulations. Securing final approval for those will be vital. Significant responsibilities remain regarding investment advisor and investment company custody oversight. We just introduced the innovation exemption, which operates as a five-year, time-limited waiver. The objective is to commence immediate work on permanent regulations, representing an exceptionally dynamic domain.”
“Thus, numerous priorities persist within and beyond the crypto sphere. Indeed, several aspirations remain unfulfilled. I would have appreciated establishing a compliance officer advisory committee as well, which is not strictly a crypto-related initiative, but a broader administrative concept. That represents an idea I have long believed would benefit the SEC.”
Q: Is there anything specifically tied to digital assets that you wished to accomplish prior to stepping down?
“A fundamental challenge requires attention across government levels: ensuring developers feel secure so they can execute their work without fearing liability if bad actors misuse tools they created. Safeguarding developers is paramount because brilliant minds dedicate their intellect to solving societal challenges only when assured that producing popular tools will not render them accountable for malicious third-party applications. Naturally, active participation in illicit conduct is a distinct matter, but individuals merely engineering software utilized improperly require legal insulation.”
“Another critical domain requiring attention, intersecting with the crypto ecosystem, involves our financial surveillance practices and how such mechanisms have been deployed. Domestically, we rely extensively on financial surveillance to detect offenses like money laundering alongside broader criminal enterprises, rendering it an integral component of our investigative toolkit.”
“In light of emerging technologies, including innovations stemming from the digital asset sector, we must evaluate methods to execute these duties with greater efficiency and effectiveness while reinforcing citizens’ privacy rights. Consequently, I have voiced strong criticisms regarding surveillance frameworks that presume individuals lack financial privacy expectations, and I desire a return to a landscape valuing personal privacy where citizens are not forced to broadcast their financial and personal details universally.”
“Therefore, a concerted effort currently would prove invaluable, and I regret missing the opportunity to participate in shaping a better paradigm that safeguards American privacy and personal autonomy while equipping law enforcement with efficient investigative instruments.”
Q: Do you offer any guidance for the SEC as it moves ahead?
“Simply persist in soliciting public commentary. Our perspective firmly maintains that we lack a monopoly on solutions, necessitating collaboration with diverse external stakeholders, encompassing both digital asset proponents and critics alike. Hearing from all quarters represents the optimal pathway toward crafting sound regulations, so I encourage them to sustain this positive momentum.”
Q: What elements should the digital asset sector strictly avoid receiving from the SEC?
“That constitutes a valid inquiry. The underlying technology facilitates extraordinary capabilities—chiefly the complete elimination of intermediaries from transactions, enabling direct engagement with an autonomous smart contract. This represents a peer-to-protocol transaction devoid of a traditional counterparty. Consequently, distinguishing transactions featuring intermediaries from those operating independently is essential.”
“In reality, numerous financial transactions will continue utilizing intermediaries, necessitating oversight mirroring traditional financial gatekeepers… if an intermediary exists, vulnerabilities such as theft, mismanagement, or third-party breaches emerge, justifying regulatory oversight. Conversely, arguing that intermediaries are absent when they clearly operate is flawed. When intermediaries exist, all parties must acknowledge them candidly and shape regulations accordingly. Therefore, resisting deceptive claims of decentralization requires vigilance.”
“Furthermore—and not implying this represents universal demands—we must maintain transparency with the public. I strongly endorse personal sovereignty, enabling individuals to self-custody digital assets and execute transactions without intermediaries. However, assuming personal responsibility carries inherent consequences.”
“Again, while supporting individual autonomy, participants must recognize associated risks. Leverage magnifies gains during bull markets while generating severe losses during downturns. Therefore, education remains essential, and individuals should not expect government protection when opting out of regulatory safety nets.”
Q: The Clarity Act has stalled in the Senate and appears unlikely to pass this session. How should the SEC navigate its regulatory agenda absent this legislation? Moreover, do potential judicial reversals or questions regarding regulatory permanence pose concerns for SEC initiatives?
“I retain optimism that the Clarity Act can achieve passage. That represents substantial legislation reflecting extensive multi-year efforts by numerous individuals, meaning ongoing work continues to advance it. Nonetheless, existing statutory authority remains readily available and actively utilized, fulfilling our mandate to adopt necessary regulations.”
“Regarding durability, my perspective remains consistent. Crafting enduring regulations that empower market participants to build functional tools requires leveraging that precise regulatory framework to deploy valued products and services. When consumers actively embrace such technological innovations, the underlying rules governing their development naturally achieve greater permanence, making them harder to dismantle.”
Q: Does the absence of comprehensive congressional crypto legislation leave fundamental gaps in the framework the SEC is currently constructing?
“We possess substantial statutory authority, and I hesitate to characterize the situation as featuring fundamental gaps. If a comprehensive spot market regulatory structure is desired, the CFTC can address specific areas within its jurisdiction. Primarily, my focus centers on exercising existing authority to execute feasible measures, serving as the practical path forward until legislative action materializes.”
Q: You transition to Regent University in November as an associate professor. What aspects excite you most about this role?
“Engaging with a generation of law students confronting a landscape vastly different from the one I encountered upon graduation, and helping them conceptualize and prepare for their futures. Interacting and collaborating with students is a true privilege; they invariably radiate greater optimism and energy than the rest of us, and I hope some of that vitality transfers to me.”
Q: What insights from your SEC tenure do you intend to impart within the classroom?
“My observations indicate that career success correlates heavily with intellectual curiosity, and I aim to foster that trait among my students. Enrolling in securities regulation courses does not require ambitions to become a securities lawyer… regulatory enforcement trouble frequently arises when individuals execute actions without recognizing potential securities law implications. Securities regulations maintain broad reach, equipping individuals with issue-spotting competencies—such as recognizing potential securities law triggers requiring deeper analysis—translates effectively across various professional domains.”
Q: Given your demanding schedule at the SEC, what pursuits do you envision with your newly acquired time, despite the rigorous demands of professorship?
“Well, I am actively orchestrating a relocation to Virginia Beach. Managing that transition currently occupies my schedule, representing unfamiliar territory I am eager to explore. Experienced educators universally describe initial teaching years as intensely demanding, so I anticipate deep involvement. Baking serves as my preferred leisure activity away from work, ensuring I will dedicate time to that craft.”
Q: What specific baked goods do you favor?
“I enjoy baking everything spanning cookies, cakes, and breads. Experimenting with diverse recipes appeals to me.”
Q: Have you attempted crafting sourdough bread?
“Indeed, I have. During my law school years, I stored a container of starter within a shared refrigerator alongside roommates. The refrigerator was notably compact. Overnight, the container lid popped off, scattering starter across every item inside the fridge, prompting considerable frustration from a roommate. That incident remains my primary association with sourdough bread.”
Q: Any concluding thoughts to share as we wrap up?
“The mission of the agency continues unabated. A single commissioner’s exit holds minimal impact. Consequently, this transition essentially constitutes a non-event.”
Originally published at https://www.theblock.co/news/regulation/2026-09-28-sec-commissioner-hester-peirce-reflects-what-she-wanted-get-done-no-good-time-to-leave-417075.
