Crypto Gets an Apology: SEC Finally Changes Its Tune

SEC Commissioner Hester Peirce, often called “Crypto Mom,” struck a rare conciliatory tone at the Coin Center Dinner this week. In a candid speech, she apologized for the agency’s historically tough stance on digital assets and admitted she had failed to sway her colleagues toward a more open approach sooner. Peirce urged the crypto community to seize this moment of growing regulatory clarity to build innovations that deliver real value, marking what many see as a turning point in the SEC’s relationship with the industry.

A Turning Point for Crypto Regulation

At the Coin Center Dinner on Thursday, SEC Commissioner Hester Peirce—widely known as “Crypto Mom”—acknowledged the agency’s past missteps in its approach to cryptocurrency. She expressed regret that for much of her tenure, the SEC had leaned toward criticism and enforcement rather than support. Peirce told the audience she hoped this new phase, marked by regulatory clarity, would empower innovators to build tools that enhance safety, security, and prosperity.

From Regulation by Enforcement to Openness

The shift comes after years of friction between the crypto industry and the SEC. Under former Chair Gary Gensler, the agency pursued a strict interpretation, often labeling most cryptocurrencies as securities and relying heavily on enforcement actions. Peirce consistently opposed this “regulation by enforcement” model. Now, with Paul Atkins appointed as SEC Chair, the Commission has pivoted. In the past year, it launched a Peirce-led Crypto Task Force, dropped several cases against crypto firms, and introduced “Project Crypto” to modernize digital asset rules.

Spotlight on NFTs

One major area of focus has been non-fungible tokens. Previous administrations brought probes and enforcement actions against NFT collections, creating uncertainty for creators and platforms. In her speech, Peirce lightened the mood by proposing a satirical NFT collection called “the Dog’s Breakfast.” It would feature caricatures of people in the crypto community—critics and advocates alike. Among them was “CryptoMom” with a “slightly befuddled expression” and “Lost-in-Law,” a lawyer in sneakers still clutching an unopened securities law book.

Looking Beyond the SEC

Peirce also hinted at her personal future, saying she plans to take up beekeeping once she leaves the SEC. The remark was both humorous and symbolic, contrasting bees’ stings with the sharper bite of her online critics. “Honey is delicious and nutritious,” she said, “and bees sting with less glee than most of my Twitter commenters.”

What This Means for the Industry?

Peirce’s apology and her calls for “quick progress” suggest the SEC is willing to reset its relationship with the crypto sector. The combination of regulatory clarity, dropped enforcement cases, and modernization efforts could open the door for meaningful innovation in digital assets. Whether the industry takes full advantage of this opportunity remains to be seen, but for now, the tone from regulators is shifting from confrontation to collaboration.