The U.S. Securities and Exchange Commission published opening remarks by Commissioner Hester M. Peirce for the second in a series of roundtables on regulatory challenges and opportunities in the crypto asset market, setting out issues the Commission may need to address as trading activity spans both securities and non-securities instruments across centralized and decentralized venues. Peirce highlighted market interest in “pairs trading” involving a security traded against a crypto asset such as a stablecoin, noting that while SEC rules do not prohibit the activity, existing requirements including recordkeeping, reporting, and national market system rules may not clearly contemplate quoting and settlement outside traditional U.S. dollar conventions. She also focused on jurisdictional and coordination questions, including how the SEC should operate within a securities-limited mandate as firms combine securities and non-securities trading, what Congress may need to consider to avoid regulatory gaps, and how market participants view risks of overlapping or conflicting federal and state regimes. As a near-term option, Peirce suggested the Commission could use exemptive authority to permit limited-scale market testing by intermediaries with appropriate guardrails, with the trials informing future rulemaking.
U.S. Securities & Exchange Commission 2025-04-11
U.S. Securities and Exchange Commission’s Peirce raises potential guidance and exemptive pilots for crypto trading models
SEC Commissioner Hester M. Peirce discussed crypto market regulatory challenges at a roundtable, highlighting "pairs trading" and jurisdictional coordination. Peirce noted SEC rules don't prohibit trading securities against crypto assets, but existing regulations may not fully address non-traditional quoting and settlement. She suggested using exemptive authority for limited market testing to guide future rulemaking.