Coinbase CEO Brian Armstrong has publicly endorsed Hester Peirce, affectionately known as “Crypto Mom,” as the perfect candidate to succeed Gary Gensler as SEC Chair. Armstrong praised Peirce’s ability to balance fairness and professionalism, noting that she would be able to collaborate with both sides of the political aisle.
She would be the best choice. Smart, fair, professional. Can work with both sides. https://t.co/YSs7DpNOnP
— Brian Armstrong (@brian_armstrong) November 7, 2024
Peirce, however, has surprised the crypto community by announcing that she will not seek the SEC Chair position when her term ends in 2025. Instead, Peirce intends to focus on leading a new crypto task force designed to address the needs and regulatory concerns of the rapidly evolving cryptocurrency industry.
This decision marks a shift from the high hopes many had for her appointment as SEC Chair, particularly from the cryptocurrency space, which views her as a strong proponent of industry-friendly policies. Peirce has long advocated for clearer regulatory guidelines that would help blockchain, AI, and other emerging technologies navigate the complex legal landscape. Her call for "safe harbors" for innovative companies aims to prevent the fear of unjust regulatory actions and to provide companies with the certainty they need to operate under clear oversight.
Despite Peirce’s decision to step away from the Chair role, her influence remains strong within the crypto community, and she continues to emphasize the importance of the rule of law and institutional integrity. She recently shared her perspective in an interview, stressing that the focus should not be on individual leadership changes, but on ensuring that the regulatory institutions are structured in a way that protects innovation and freedom for all stakeholders.
As the 2025 presidential election approaches, speculation continues about who will fill the role of SEC Chair under the Trump administration. While Peirce steps aside, another crypto-friendly figure, Robinhood’s Chief Legal Officer Dan Gallagher, has emerged as a leading candidate. Gallagher, who has been a vocal advocate for a lighter regulatory approach to digital assets, has garnered support from key figures in the crypto space. He has consistently called for the recognition of digital assets as a distinct asset class rather than categorizing them as securities, a stance that aligns with the growing demand for regulatory clarity and innovation in the crypto industry.
Additionally, Republican SEC Commissioner Mark Uyeda has voiced his commitment to working with the Trump administration to put an end to what he describes as the SEC’s "war on crypto," particularly regarding enforcement actions against crypto companies that fail to register without allegations of fraud or harm. Ripple CEO Brad Garlinghouse has also urged for concrete action in the first 100 days of the Trump administration to foster a more favorable regulatory environment for the industry.
With these political shifts on the horizon, the future of crypto regulation remains a pivotal issue for both lawmakers and the industry.
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