Hester Peirce

Hester Peirce’s final day as an SEC commissioner has renewed attention on her long-running push for clearer digital asset rules and stronger privacy protections. Her parting message frames the United States as facing a policy choice between broader financial surveillance and a regulatory model that supports privacy-enhancing blockchain technology.

The U.S. Securities and Exchange Commission has proposed new rules intended to clarify how investment advisers and regulated funds may custody client crypto assets. The proposal includes a limited pathway for adviser self-custody, recordkeeping and disclosure expectations, auditing requirements, and the potential use of state-chartered trusts as custodians.

The SEC’s proposed transfer-agent modernization could become a defining framework for tokenized securities as markets move from paper-era records to blockchain-based ownership systems. The central issue is whether tokenization simplifies settlement or recreates fragmented ownership records in digital form.

SEC Commissioner Hester Peirce, widely known in digital asset circles as Crypto Mom, will leave the agency on Oct. 2. Her exit comes as the SEC continues to publish crypto policy guidance, including new material on token classifications, marketing expectations and staking receipt tokens.

The U.S. Securities and Exchange Commission is examining how traditional securities markets could move closer to the nonstop rhythm long associated with crypto. The discussion comes as the agency approves a new exemptive path for tokenized securities trading and considers how market structure must adapt.

SEC Commissioner Hester Peirce said some crypto vaults and onchain lending strategies may fall within federal securities laws depending on how they are structured and managed. The comments weighed on Morpho’s token and sharpened the regulatory focus on one of DeFi’s fastest growing yield sectors.