United States Securities and Exchange Commission Commissioner Hester Peirce has advocated for increased decentralization within the U.S. financial system, alongside a more lenient approach to regulating and enforcing crypto-related matters.

During her fireside chat with CNBC’s MacKenzie Sigalos at the ETHDenver conference on Feb. 29, Peirce, affectionately known as "Crypto Mom," emphasized the benefits of decentralization for the U.S. financial system. She highlighted the risks associated with centralization, stating that decentralized systems can offer resilience and strength, contrasting with the concentrated risks of centralized structures.

Appointed to the SEC by former President Donald Trump in 2018, Peirce has earned the nickname "Crypto Mom" due to her supportive stance towards the crypto industry and her dissent against excessive regulation of digital assets.

Addressing concerns about proposed legislation treating decentralized technologies as financial institutions, Peirce expressed her unease, noting the confusion surrounding registration requirements. She also discussed how regulations, such as the broker/dealer rule, could impact decentralized finance (DeFi) and exchanges, highlighting the challenge of applying traditional regulatory frameworks to decentralized systems.

Peirce emphasized that the concept of decentralization poses a significant challenge for the SEC, as it deviates from the agency's traditional approach. She stated that the SEC's role is primarily to ensure disclosure where securities are involved, allowing individuals to make informed decisions.

The SEC recently implemented rules on Feb. 6 to expand registration requirements and enhance oversight over DeFi. Peirce stressed the need for provisions that facilitate the growth of projects towards decentralization without the fear of legal repercussions.

Looking ahead, Peirce discussed various crypto-related topics, including the SEC's future post-U.S. presidential election, spot Bitcoin exchange-traded funds, central bank digital currencies, and concerns regarding state financial surveillance

image source: Cointelegraph