Hester Pierce Declares SEC Has No Jurisdiction Over Meme Coins ⋆ ZyCrypto

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Hester Pierce Declares SEC Has No Jurisdiction Over Meme Coins ⋆ ZyCrypto

Hester Pierce, a commissioner at the US Securities and Exchange Commission (SEC), has stated that the regulatory body does not have full jurisdiction to oversee meme coins.

In an interview with Bloomberg, Pierce noted that most meme coins did not fall under the SECs purview. However, she added that the US Congress or the Commodity Futures Trading Commission (CFTC) had the mandate to address this regulatory gap.

SEC Should Not Stifle Innovation

The SEC Commissioner further noted that the role of the SEC was not to stifle innovation and frustrate industry participants. Instead, the regulatory body needed to come up with ways to support innovative ideas across the industry.

The commissioner further pointed out the role that blockchain technology has played in building a “trust mechanism.” According to her, this technology could become integrated with the traditional financial world, expanding the purpose of the crypto industry.

Pierce, who also heads the crypto task force at the SEC, noted that despite a need to give innovators “freedom,” the rules governing financial products would continue to be enforced to protect investors.

Pierce was appointed to head the new SEC task force in late January, seeking to establish a clear crypto regulatory framework. Given that she has previously held a pro-crypto stance, her appointment to head the task force aligned with plans by US President Donald Trump to support crypto innovation.

Trump Picks a New CFTC Chair

Besides the SEC, the CFTC could play a crucial role in shaping crypto regulations in the US, with the recent appointment of Brian Quintez as the new Chair set to pave the way for regulatory clarity.

Before his appointment, Quintez was a CFTC commissioner and also the Head of Policy at a16z, a crypto firm. Per crypto lawyer Jeremy Hogan, Quintez was a good pick for the position.

“The head of the CFTC will, eventually, likely be more important to the crypto space than the head of the SEC. And Brian Quintez is a solid A,” Hogan noted.