📢 SEC’s Hester Peirce: Crypto Could Be a Security—Depending on How It’s Traded
On May 29, SEC Commissioner Hester Peirce, who leads the U.S. Securities and Exchange Commission’s Crypto Task Force, emphasized that digital asset transactions may be classified as securities depending on the context in which they are sold or transferred.
Speaking at the Bitcoin 2025 Conference in Las Vegas, Peirce noted that the nature of the transaction matters more than the asset itself when determining whether securities laws apply.
🧩 When Is a Digital Asset a Security?
Peirce explained that most digital assets are not inherently securities, but can fall under securities regulations based on how they are marketed or sold. She cited examples such as:
- Initial coin offerings (ICOs) resembling public stock offerings
- Tokenized equity, where traditional financial assets like stocks and bonds are converted into blockchain-based tokens
“We need a clear framework to determine when securities laws should apply,” she stated.
Peirce emphasized that the lack of comprehensive guidance creates uncertainty for innovators and investors in the crypto space.
⚖️ Toward Clearer U.S. Crypto Regulation
Peirce’s comments come at a time when the SEC, Congress, and the White House are actively working to establish a comprehensive regulatory framework for digital assets. The goal is to prevent the migration of crypto innovation to other jurisdictions with more favorable regulations.
The SEC launched its Crypto Task Force on January 21, 2024, one day after former President Donald Trump’s inauguration. Since then, the agency has been conducting nationwide roundtable discussions with crypto industry leaders to shape the future of U.S. crypto regulation.
🗂️ SEC’s First Crypto Regulation Report Coming Soon
SEC Chair Paul Atkins testified before Congress in May 2025, stating that the commission will release its first official crypto regulatory report “within the next few months.” The report is expected to clarify:
- How digital assets will be classified under existing laws
- The role of tokenization in traditional finance
- Guidelines for investor protection in the crypto space
🔍 Final Thoughts: The Industry Needs Clarity
The future of crypto in the U.S. hinges on regulatory clarity. While Peirce acknowledged that innovation should not be stifled, she made it clear that investor protection and legal certainty are top priorities.
As digital assets continue to evolve, the way they are issued, marketed, and traded will determine whether they fall under federal securities laws. The crypto industry—and its investors—will be watching closely as the SEC unveils its upcoming guidelines.