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"Pro-crypto" SEC Commissioner Peirce expresses concern over banking restrictions on crypto companies

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2024-12-19 20:28:03
Hester Peirce, the commissioner of the Securities Exchange Commission (SEC), expressed serious concerns about the "de-banking" of crypto companies at a meeting on Wednesday. As one of the SEC's five commissioners, Peirce, affectionately known in the industry as the "crypto mom", has been relatively open to the crypto industry, in sharp contrast to the hard-line stance of SEC Chairperson Gary Gensler.
In considering the Public Company Accounting Oversight Board (PCAOB) budget, Peirce questioned the agency's special focus on businesses that hold crypto assets or provide crypto trading services. "There have been recent indications that regulators are trying to dissuade regulated entities from providing services to the crypto industry and its participants," she noted. Despite Peirce's vote against it, three other commissioners under Gensler approved the agency's budget of nearly $400 million for 2025.
Recently, the crypto industry has widely reported problems with banking services. Venture capitalist Nic Carter calls this "Operation Breakpoint 2.0", alluding to the Obama-era anti-fraud policies targeting high-risk industries such as gun dealers and payday lenders. The public outcry of Marc Andreessen, a well-known Silicon Valley investor, has triggered a chain reaction, prompting more crypto executives to share similar experiences.
The issue has captured the attention of Congress, with Rep. French Hill stressing at a congressional hearing in December: "In this great country, legitimate businesses deserve the freedom of banking and financial services."