At the recent Bitcoin 2025 conference in Las Vegas, Hester Peirce, the head of the U.S. Securities and Exchange Commission’s (SEC) crypto task force, offered insightful perspectives on how securities laws apply to digital assets. Peirce emphasized that whether a crypto transaction is considered a securities deal depends less on the asset itself and more on the context of the transaction.
Peirce, often known as “Crypto Mom” for her advocacy of clearer, fairer crypto regulations, explained to attendees that the SEC is working toward creating a nuanced regulatory framework to clarify when digital asset dealings fall under securities law. She noted that many cryptocurrencies in circulation today probably do not qualify as securities on their own. However, she warned that selling a token—even one that isn’t inherently a security—could still be treated as a securities transaction depending on how the sale is conducted.
She illustrated this point with examples such as the sale of cryptocurrency in an initial public offering (IPO) or when a company tokenizes its stock to raise capital. These scenarios, Peirce explained, highlight the need for the SEC to provide clearer guidance to both issuers and investors. “It’s not just about the token itself; it’s about the nature and circumstances of the transaction,” she remarked during her keynote.
Looking forward, Peirce foresees the crypto landscape evolving with an increasing number of digital assets that clearly fit within the definition of securities. As more traditional financial instruments like stocks and bonds become tokenized and brought onto blockchain networks, the lines between conventional securities and digital assets will blur further. This emerging trend requires regulatory frameworks that can adapt without stifling innovation.
Peirce’s remarks come at a time when the SEC is intensifying efforts to build a comprehensive regulatory environment for cryptocurrencies in the United States. This initiative is part of a broader government strategy involving lawmakers and the executive branch aimed at preventing the migration of crypto businesses and innovation to more crypto-friendly foreign jurisdictions. The stakes are high, as the U.S. strives to balance investor protection with fostering technological growth.
In addition to her comments on securities classifications, Peirce has also weighed in on related matters, such as clarifying that non-fungible token (NFT) royalties alone do not necessarily make a token a security. This nuanced approach reflects her broader goal of tailoring regulations to the specific mechanics and risks of different crypto products rather than imposing one-size-fits-all rules.
The SEC’s crypto task force, which Peirce leads, was established early in 2021, signaling the agency’s commitment to keeping pace with the rapidly changing crypto ecosystem. Since then, the SEC has hosted multiple roundtable discussions with industry leaders, aiming to strike a balance between investor protection and innovation encouragement.
Recently, SEC Chair Paul Atkins testified before Congress, indicating that the agency is on track to release its first detailed report on crypto regulations in the near future. This report is expected to provide more clarity and serve as a foundational document for future policy-making efforts.
Overall, Hester Peirce’s observations underscore a central challenge for regulators worldwide: developing clear, flexible, and forward-looking guidelines that address the unique characteristics of crypto assets and transactions without hampering their growth potential. As digital assets continue to evolve, so too must the legal frameworks that govern them.
