SEC Commissioner Hester Peirce Leaves Agency, Says Developer Protection and Financial Privacy Still Need Work

After nearly a decade at the SEC, Hester Peirce is wrapping up her final week, saying there is “no good time to leave” with so much crypto rulemaking still unfinished.

Hester Peirce Resigns From the SEC

Peirce sent a resignation letter to President Donald Trump on Friday and leaves Oct. 2 to teach securities law and writing at Regent University School of Law. She served under Chairs Jay Clayton, Gary Gensler and now Paul Atkins. Once she departs, Atkins and Commissioner Mark Uyeda will be the only two leaders, both Republicans, while Democrats push for more nominees to build a five-person board. Her exit comes as the Clarity Act has stalled in the Senate and is unlikely to pass this year.

SEC Crypto Regulation Progress

Peirce said the biggest lesson is that regulators should have started building a crypto framework earlier, since years of enforcement fights cost the industry ground. She credited the new proactive approach of the past two years. The SEC has released Regulation Crypto Assets, transfer agent rules and a five-year innovation exemption, with a permanent rule set as the next goal. Custody rules for investment advisers and funds are still pending.

Developer Protection and Financial Privacy

Peirce said developers need protection from liability when others misuse their tools, unless they take part in the wrongdoing. She also criticized financial surveillance that assumes no one deserves privacy and wants stronger protection for Americans while still giving law enforcement effective tools.

Advice on Intermediaries and Self-Custody

She said intermediaries should be regulated like traditional ones, and projects should not claim to be decentralized when they are not. People who choose self-custody or leverage should understand the risks and not expect government protection. Her advice to the SEC is to keep seeking public input, including from critics of crypto.