In a candid fireside chat at PubKey, New York City’s Bitcoin-themed bar, SEC Commissioner Hester Peirce shared her perspectives on cryptocurrency regulation, privacy rights, and the importance of permissionless networks. The conversation with NYDIG founder Ross Stevens touched on several critical issues facing the crypto industry today, reflecting Peirce’s thoughtful approach to regulation that balances innovation with consumer protection.
Defending Permissionless Technology
Peirce emphasized the fundamental importance of permissionless networks like Bitcoin as tools for freedom. She posed a thought-provoking question about how historical figures like Harriet Tubman might have benefited from Bitcoin’s properties. When Stevens raised concerns about potential government confiscation of bitcoin similar to the 1933 gold seizure under Executive Order 6102, Peirce acknowledged the risk while calling for vigilance.
“To protect ourselves from something like Executive Order 6102, we must reaffirm the founding principles of America and hold the government accountable to those principles,” Peirce stated.
The commissioner also strongly defended treating code as speech, warning that requiring developers to seek government approval before publishing code would severely hamper innovation in open-source software development .
Advocating for Financial Privacy
One of the most striking moments came when Peirce addressed financial privacy rights. “It’s remarkable to me how little people care about financial privacy,” she observed. “It’s very personal how you spend your money — and we’ve ceded so much privacy.”
When asked specifically about crypto mixers, tools that enhance transaction privacy, Peirce defended Americans’ right to use such technology, stating, “There’s supposed to be a presumption of innocence in this country. Technologies that allow you to do things on chain but also allow you to preserve privacy are really important.”
The commissioner acknowledged the challenges of potentially reforming the Bank Secrecy Act, which requires financial institutions to collect substantial customer data, calling it a “third rail” issue in Washington due to concerns about enabling bad actors .
Balancing Regulation and Innovation
Throughout the event, Peirce demonstrated her commitment to listening to industry participants and considering diverse perspectives. When asked about the possibility of in-kind redemptions for retail investors in spot bitcoin ETFs, she thoughtfully engaged with the question despite indicating it was “unlikely.”
Her closing remarks reflected her regulatory philosophy: “I’m concerned that we’ll stunt growth if we do things the wrong way,” highlighting her desire to ensure that regulation doesn’t impede the potential of cryptocurrency and blockchain technology .
This appearance follows Peirce’s recent efforts to engage more directly with the crypto community, including her call for public input on crypto asset regulation and her leadership of the SEC’s Crypto Task Force, which aims to bring clarity and consistency to the regulatory landscape .
