New Developments in SEC Cryptocurrency Regulations

Hester Peirce, a Commissioner of the U.S. Securities and Exchange Commission (SEC), emphasized that the regulation of crypto assets, tokenization, and privacy issues are among the agency's top priorities. This statement has had a noticeable impact on investors. Given that the dynamics of cryptocurrency markets are closely linked to regulatory announcements, these topics are increasing investor interest.

During her speech at the DC Privacy Summit event, Peirce announced that the SEC is working with Congress on new laws to regulate the digital asset sector. She noted that tokenization has now become a major focus for the SEC, stating that companies are racing to move their stocks onto blockchain technology. Last month’s application by Nasdaq for the trading of tokenized securities is also an important part of this process.

However, Peirce said that the ongoing budget crisis of the U.S. government has brought the agency’s work to a standstill. She expressed that “almost nothing is progressing right now,” indicating that this has also delayed the approval of cryptocurrency ETFs. Investors should closely monitor market developments in light of this situation.

Peirce also drew attention to the new awareness that crypto creates regarding financial privacy. Expressing her concerns about crypto privacy last August, Peirce argued this time that the Bank Secrecy Act, Anti-Money Laundering, and Know Your Customer regulations must be rethought. “The nature of crypto is inherently peer-to-peer. Therefore, it is difficult to directly impose existing Anti-Money Laundering and Know Your Customer systems here,” she stated, noting that this presents a significant opportunity for the system to be redesigned from the ground up.

Peirce expressed that the SEC's approach to cryptocurrency markets is moving toward a new direction, announcing that the policy framework in this area will be reshaped with “Project Crypto.” Moving away from the strict regulatory line of former Chairman Gary Gensler, the SEC is currently seeking a more balanced approach through meetings with industry representatives. Investors should closely watch the new decisions and regulations that the SEC will make.