In remarks at Princeton University, U.S. Securities & Exchange Commission Commissioner Hester Peirce, speaking in her personal capacity, set out a framework for the agency’s crypto work that would confine securities regulation to activity within the SEC’s remit and avoid treating open-source developers or neutral blockchain infrastructure providers as regulated intermediaries. She argued that publishing code is protected speech, blockchains are a general-purpose technology, and infrastructure providers that merely process data under open, non-discretionary logic should not have to register with the SEC. Regulation is more likely to be appropriate, she said, where centralized crypto actors exercise discretion over or custody customer securities or funds. Peirce said the SEC’s Crypto Task Force is grappling with where regulation should apply in decentralized markets, and warned against forcing categories such as broker, dealer and exchange onto systems with no controlling intermediary. She pointed to the staff statement on certain user interfaces used for crypto asset securities transactions as a temporary measure while the Commission considers whether and how to regulate that area, and to a planned innovation exemption for onchain trading of NMS stock as a way to evaluate the regulatory treatment of such trading. She also reiterated calls with Chairman Paul Atkins to revisit the exchange and broker definitions so they capture activity that should be regulated while excluding activity that should not. Peirce presented the principles as a basis for further discussion and asked whether the Commission should adopt them through interpretive rulemaking or reflect them through future rulemaking and enforcement. She also urged industry to address risks through technical safeguards and standards rather than waiting for regulatory fixes.
U.S. Securities & Exchange Commission2026-06-03
U.S. Securities & Exchange Commission Commissioner Hester Peirce outlines crypto principles that would keep open-source code and neutral blockchain infrastructure outside SEC registration
SEC Commissioner Hester Peirce outlined a crypto framework that limits securities rules to activity clearly within the SEC’s remit and avoids treating open‑source developers or neutral blockchain infrastructure as regulated intermediaries, stressing regulation is most appropriate where centralized actors exercise discretion or hold customer assets. She cited ongoing work, including the Crypto Task Force’s review of decentralized markets, staff guidance on crypto user interfaces, and a planned innovation exemption for onchain NMS stock trading, and renewed calls to refine exchange and broker definitions. Peirce framed her principles as a basis for further discussion and urged industry to mitigate risks through technical safeguards and standards.