Daily News 19

Tag: Hester Peirce

  • Hester Peirce Departs SEC: What Her Exit Means for Crypto Custody in Germany

    Hester Peirce Departs SEC: What Her Exit Means for Crypto Custody in Germany

    Key Highlights

    • SEC Commissioner Hester Peirce, known as “Crypto Mom,” departs October 2, 2026, leaving a two-member commission (Chair Paul Atkins and Mark Uyeda) with no nominee yet named for the vacant seat.
    • For investors in Germany, European law—specifically MiCA and the AMLR—governs crypto access, custody, and taxation; SEC staffing changes do not alter rights or obligations under EU regulation.
    • From July 10, 2027, EU-regulated providers must delist anonymity-enhanced assets such as Monero and Zcash under AMLR Article 79, though self-custody remains legal; holders should prepare withdrawal or sale strategies now.

    Peirce Departs SEC; Commission Reduced to Two Members

    U.S. Securities and Exchange Commission Commissioner Hester Peirce announced her resignation on September 25, 2026, with a final working day of October 2, 2026. In a farewell letter published on the platform X, she thanked the President for the opportunity to hold the office and said she expected the agency to continue striking a balance between regulation and individual freedom of choice. Peirce has served on the commission since January 2018; her second five-year term expired in June 2025, but she remained in office under a holdover provision that permits a commissioner to serve until a successor is confirmed. Since February 2025 she led the SEC’s Crypto Task Force, the working group shaping U.S. digital-asset classification. Following her departure, she will join the law faculty at Regent University in Virginia in November.

    Peirce earned the industry nickname Crypto Mom for repeatedly voting against enforcement actions targeting crypto projects and for defending the right to self-custody. Her exit leaves the commission with two members: Chair Paul Atkins and Commissioner Mark Uyeda. SEC rules of procedure allow two members to form a quorum when the commission is understaffed, so operations continue. However, the White House has not yet nominated a candidate for the vacant seat, and Senate confirmation typically takes six to twelve months, meaning the third seat could remain empty well into 2027. A two-member bench makes contested rulemakings more vulnerable to legal challenge, as opponents can more easily argue the absence of a robust majority. The Crypto Task Force is expected to continue its work, though without the commissioner who built it; whether the agency maintains its current stance on custody, token classification, and exemptions will only become clear in forthcoming decisions.

    European Rulebook Governs German Investors, Not SEC Staffing

    For anyone buying crypto in Germany through an exchange or broker, the applicable framework is European, not American. The Markets in Crypto-Assets Regulation (MiCA) became fully applicable across the European Union on July 1, 2026, ending all transition periods. Every provider serving EU clients must now hold authorisation as a crypto-asset service provider (CASP). The European Securities and Markets Authority (ESMA) publicly called on unlicensed providers in June 2026 to wind down their EU operations in an orderly manner.

    This creates a clear allocation of responsibility: complaints about a platform authorised in Germany go to BaFin; claims over loss of client funds fall under MiCA and German law; SEC decisions do not interrupt that chain. Investors verifying whether their platform operates within the EU perimeter should consult the public registers of competent authorities rather than follow personnel news from Washington. A provider absent from the register may not serve EU clients, and no European supervisor stands behind it in a dispute.

    AMLR Article 79: Anonymity-Enhanced Assets Face July 2027 Deadline

    What Article 79 Prohibits Providers From Doing

    The concrete rule change for European investors is already published in the Official Journal and is unrelated to the SEC. Regulation (EU) 2024/1624, adopted May 31, 2024, applies from July 10, 2027. Its Article 79 prohibits credit institutions, financial institutions, and crypto-asset service providers from maintaining anonymous accounts. Expressly covered are accounts for crypto-assets that permit the anonymisation of transactions, as well as dealing in coins whose purpose is to obscure payment flows. In practice, regulated trading venues in the EU will have to remove assets such as Monero (XMR) and Zcash (ZEC) from their offerings by that deadline.

    Why Your Own Wallet Is Not Covered

    The regulation addresses obliged entities—banks, financial institutions, and service providers. It does not forbid private individuals from holding such coins in a wallet of their own or sending them directly to another wallet. Self-custody means you hold the private keys yourself and no service provider keeps them for you. What changes in 2027 is the on- and off-ramp: deposits, withdrawals, and exchanges run through providers, and those are precisely the parties that are bound. Anyone holding assets from this group therefore has a time frame and two routes: move into self-custody while withdrawals are still open, or sell within the regulated offering. Both require preparation.

    US Spot ETFs vs. European ETPs: Access Routes for German Investors

    This is where U.S. regulation becomes tangible for German retail investors, and in a direction often misunderstood. Spot crypto ETFs authorised in the United States are generally not tradable for retail investors in Germany through German brokers because they lack the European investor information documents required under the Prospectus Regulation and MiFID II. The European route runs through exchange-traded products (ETPs) or exchange-traded notes (ETNs)—securities that track the price of a crypto-asset and are in many cases physically backed. For tax purposes these products are not the same as owning coins directly. How a crypto ETP is treated depends on its structure; the one-year holding period from income tax law applies to crypto-assets held directly. That classification should be settled before purchase, not at tax-return time.

    Holding Period and Records: Moving to Self-Custody Is Not a Disposal

    A transfer from an exchange to your own wallet is not a disposal. Under common practice the original acquisition date is preserved, so the one-year holding period under Section 23 of the German Income Tax Act (EStG) continues to run and does not restart. A profit realised within one year of acquisition is taxable; after one year it remains tax-free. Since 2024, an exemption limit of €1,000 per calendar year applies to gains within the period, and the limit falls away entirely once exceeded.

    Documentation is critical. Since January 1, 2026, crypto-asset service providers have been reporting transaction and personal data to tax authorities; the first transmission for the 2026 tax year occurs in 2027. The tax office will see movements whose tax classification you must justify. Document acquisition dates and transfers without gaps so that, in case of doubt, you argue with paperwork rather than memory.

    Hardware Wallet and Seed Phrase: Three Checks Before the Move

    Self-custody shifts risk: no service provider can freeze your coins, and nobody but you can recover them. A seed phrase is the sequence of words from which all private keys of a wallet can be restored; whoever has it has the coins. The move into your own custody is a transfer between your wallets and not a sale. Three steps belong before the first large transfer:

    1. Backup the word sequence on paper or metal—never as a photo, a cloud note, or in a browser-linked password manager.
    2. Test with a small amount: send a nominal sum, restore the wallet from the backup on a second device, send the amount back. Only then move the full balance.
    3. Verify what your device displays before approving any transaction; a signature whose content you cannot read is a blank cheque.

    A device is no substitute for care. The most common losses stem not from broken encryption but from lost backups and from approvals the owner granted themselves.

    Market Snapshot (September 26, 2026, 21:48 UTC)

    At the time of analysis, Bitcoin traded at $84,146 (CoinGecko), up 0.39% on the day and 3.31% over seven days. Zcash stood at $1,675.92 (+9.31% daily), and Monero at $555.71 (+0.57% daily). On the upside, the $87,000 level marks where the early-week rally failed before price fell back below $84,000 according to September 26 reports. On the downside, the area around $84,000 marks the zone that has only just given way. Both are reference points from price history, not forecasts. Price targets cited in analyses belong to the person or house voicing them, not to the market. For the regulatory questions at hand, the price situation is secondary: the July 2027 deadline is fixed regardless, and holding periods run on calendar days, not prices.

    Why This Matters

    The departure of a single U.S. regulator—however prominent—does not rewrite the legal framework governing crypto investors in Germany. The European Union has established a comprehensive, binding regime through MiCA and the Anti-Money Laundering Regulation (AMLR) that determines which assets may be offered, which providers may operate, and how client assets are protected. The July 10, 2027 AMLR deadline for anonymity-enhanced assets is a hard regulatory milestone that will reshape the product range on every EU-licensed venue, irrespective of SEC leadership. Meanwhile, U.S. spot ETFs remain structurally inaccessible to EU retail investors, directing demand toward physically backed ETPs with distinct tax treatment. For German investors, the actionable priorities are clear: verify provider authorisation via BaFin or home-state registers, prepare for the delisting of Monero and Zcash by moving to self-custody or selling before July 2027, and maintain rigorous acquisition records ahead of the first automated tax-data transmission in 2027.

    Frequently Asked Questions

    Does Hester Peirce’s resignation change what crypto I can buy or hold in Germany?

    No. Your rights and obligations are set by European and German law—MiCA, the AMLR, and the German Income Tax Act—not by the staffing of the U.S. SEC. The assets available on EU-licensed platforms, the rules for self-custody, and the tax treatment of gains are unaffected by SEC personnel changes.

    Will I still be able to hold Monero (XMR) and Zcash (ZEC) after July 10, 2027?

    Yes, in self-custody. AMLR Article 79 prohibits EU-regulated providers (exchanges, custodians, brokers) from offering or facilitating transactions in anonymity-enhanced assets. It does not prohibit private individuals from holding, sending, or receiving those assets in their own wallets. However, after July 10, 2027, you will not be able to deposit or withdraw them through any EU-licensed service provider.

    Does moving crypto from an exchange to my own hardware wallet reset the one-year tax-free holding period?

    No. Under prevailing German tax practice, a transfer to self-custody is not a disposal. The original acquisition date is preserved, so the one-year holding period under §23 EStG continues uninterrupted. Ensure you document the transfer and retain records of the original purchase to substantiate the holding period if questioned by tax authorities.

  • SEC Commissioner Hester Peirce to Step Down October 2

    SEC Commissioner Hester Peirce to Step Down October 2

    Key Highlights

    • SEC Commissioner Hester Peirce, known as “Crypto Mom,” resigned effective October 2, 2025, leaving the commission with only two sitting members: Chairman Paul Atkins and Commissioner Mark Uyeda.
    • Peirce’s departure removes the leader of the SEC’s Crypto Task Force at a critical juncture as the agency advances token-classification FAQs and proposed Regulation Crypto Assets.
    • The White House has not yet named a successor, and confirmation timelines typically span six to twelve months, creating an extended leadership vacuum at the five-member commission.

    Peirce Announces Departure After Eight-Year Tenure

    SEC Commissioner Hester Peirce announced her resignation on September 25, posting her resignation letter on X with the caption “T minus 7,” a countdown to her final day at the agency on October 2. Peirce, widely known as “Crypto Mom” for her persistent push for clearer, rules-based digital-asset regulation, has served on the commission since January 2018. Her departure will leave the SEC with just two sitting commissioners, Chairman Paul Atkins and Commissioner Mark Uyeda, and no successor yet named by the White House.

    Eight Years of Dissent and Crypto Task Force Leadership

    Peirce spent more than eight years as the commission’s most consistent advocate for written crypto rules, frequently dissenting from what she characterized as enforcement-first decisions, including the agency’s earlier refusals to approve spot Bitcoin exchange-traded funds. In January 2025 she took charge of the Crypto Task Force, the group behind much of the SEC’s digital-asset policy work, including its warnings on securities risk in crypto yield vaults and onchain lending. Her second term expired on June 5, 2025, but SEC rules allow a commissioner to serve up to about 18 months past a term’s end when no replacement has been confirmed.

    Resignation Letter Emphasizes Regulatory Philosophy

    In the letter addressed to President Trump, Peirce called her tenure “the honor of my professional lifetime” and wrote that “maximizing people’s freedom to choose what is best for themselves and their families within sensible regulatory parameters designed to give them the confidence to transact with others is a delicate and vitally important task for the regulator.” She said she leaves confident that the agency’s work will continue under Atkins and Uyeda.

    A Two-Member Commission and the Road Ahead

    The resignation reduces the commission to two Republican members and removes the Crypto Task Force’s leader at a moment when the agency’s crypto agenda is running at full speed. The agency already carried a vacant seat after Democratic Commissioner Caroline Crenshaw departed in January, so Peirce’s exit leaves two empty spots on the five-member commission. The announcement landed the same day the SEC published new token-classification FAQs, part of a rulemaking push that has included its proposed Regulation Crypto Assets. The White House has not named a successor, and confirmation timelines can run six to twelve months. Peirce is expected to join Regent University School of Law in Virginia as an associate professor in November.

    Why This Matters

    Peirce’s departure creates significant uncertainty for the SEC’s digital-asset regulatory agenda at a pivotal moment. With only two commissioners remaining, the commission lacks a quorum for certain rulemaking actions, potentially slowing the progress of proposed Regulation Crypto Assets and other pending initiatives. The Crypto Task Force, which Peirce led since January 2025, has been instrumental in shaping the agency’s approach to token classification, yield products, and lending protocols. Her absence may alter the trajectory of enforcement priorities and rulemaking timelines. The extended vacancy period—potentially six to twelve months before a successor is confirmed—means the SEC will operate with a skeletal leadership structure during a period of intense industry scrutiny and legislative activity around digital assets. Market participants should monitor White House nomination signals and Senate Banking Committee scheduling for clues about the agency’s future direction.

    Frequently Asked Questions

    When does Hester Peirce’s resignation take effect?

    Peirce’s resignation takes effect on October 2, 2025, as indicated by her “T minus 7” countdown posted on September 25.

    Who will lead the SEC’s Crypto Task Force after Peirce’s departure?

    The source material does not specify a successor for the Crypto Task Force leadership role. With only Chairman Paul Atkins and Commissioner Mark Uyeda remaining, the task force’s future leadership structure remains uncertain.

    What is Hester Peirce’s next professional role?

    Peirce is expected to join Regent University School of Law in Virginia as an associate professor starting in November 2025.

  • Former SEC Acting Chair: Agency Dropped Crypto Cases to Avoid Credibility Issues

    Former SEC Acting Chair: Agency Dropped Crypto Cases to Avoid Credibility Issues

    Key Highlights

    • The SEC dismissed enforcement actions against major cryptocurrency firms including Kraken, Ripple Labs, and Coinbase in early 2025 to preserve agency credibility ahead of a planned “180-degree change” in regulatory policy.
    • Former Acting Chair Mark Uyeda stated that allowing litigators to argue positions in court that contradicted forthcoming Commission interpretations would have damaged the SEC’s institutional credibility.
    • With Commissioner Hester Peirce’s expected departure in November 2025, the Commission will operate with only two of its five presidentially appointed members, and no replacement nominations have been announced.

    Uyeda Defends SEC’s Decision to Drop Crypto Enforcement Actions

    Credibility Concerns Prompted Case Dismissals

    Speaking at the Psaros Center for Financial Markets and Policy’s Financial Markets Quality Conference on Wednesday, SEC Commissioner Mark Uyeda provided the most detailed explanation to date for the agency’s abrupt dismissal of high-profile cryptocurrency enforcement actions in early 2025. Uyeda, who served as acting chair from January to April 2025 following Gary Gensler’s resignation, revealed that the Commission dropped cases against Kraken, Ripple Labs, Coinbase, and other firms because it was preparing a “180-degree change” in rulemaking. He argued that proceeding with litigation authorized under the prior administration would have forced SEC attorneys to advocate positions in court that were directly contrary to the policy framework the Commission intended to adopt.

    Uyeda emphasized that the decision was driven by institutional integrity rather than political pressure. “I’m not about to have our litigators, even though they’re having cases that were authorized under the prior administration, stand up in court and have a commission interpretation be issued that is a 180-degree change from what they’d been arguing for that court,” said the commissioner. “I think that hurts [our] credibility as an agency.” He further noted that there had been “significant concerns” that the cases against crypto companies were not “justifiable under law,” suggesting the prior enforcement approach lacked solid legal footing.

    Political Context and Industry Reaction

    The case dismissals occurred against a highly charged political backdrop. President Donald Trump had campaigned on a promise to fire former SEC Chair Gary Gensler “on day one” if elected, and Gensler resigned on Inauguration Day 2025. Many critics characterized the SEC’s retreat from crypto enforcement as payback for the industry’s substantial financial support of Trump’s 2024 campaign. However, Uyeda’s remarks frame the decision as a deliberate, credibility-preserving maneuver necessitated by a fundamental policy reversal, rather than a transactional political favor.

    Looming Leadership Gap at the Commission

    Beyond the immediate policy shift, the SEC faces a structural leadership challenge. Uyeda has served as a commissioner since 2022 and currently sits on the leadership panel alongside Chair Paul Atkins and Commissioner Hester Peirce. With Peirce’s term set to expire in November 2025, the five-member Commission will be reduced to just two sitting commissioners—Uyeda and Atkins—unless the White House moves swiftly to nominate and confirm replacements. As of the conference date, the Trump administration has not announced any nominations for the vacant seats, raising questions about the Commission’s capacity to advance its rulemaking agenda or maintain quorum for certain actions.

    Why This Matters

    The SEC’s abandonment of its aggressive crypto enforcement posture marks a watershed moment in U.S. digital asset regulation. By prioritizing institutional credibility over litigation momentum, the Commission signals a shift from enforcement-led regulation to a rulemaking-first approach—a move long advocated by industry stakeholders who argued the prior strategy created regulatory uncertainty through “regulation by enforcement.” However, the ensuing leadership vacuum threatens to stall the very rulemaking process Uyeda cites as justification for the dismissals. With only two commissioners seated after November, the SEC may lack the quorum needed to propose or adopt new rules, potentially leaving the crypto industry in a prolonged regulatory limbo. The administration’s delay in nominating replacements will be a critical indicator of how quickly the promised policy overhaul can materialize.

    Frequently Asked Questions

    Which cryptocurrency enforcement cases did the SEC drop in early 2025?

    The SEC dismissed civil actions against Kraken, Ripple Labs, Coinbase, and several other crypto firms that had been filed during the tenure of former Chair Gary Gensler.

    Why did Commissioner Uyeda say the cases were dropped?

    Uyeda stated the dismissals were necessary to avoid having SEC litigators argue positions in court that would contradict a planned “180-degree change” in the Commission’s regulatory policy, which he said would have damaged the agency’s credibility.

    What is the current composition of the SEC leadership?

    As of the conference, the Commission is led by Chair Paul Atkins and Commissioners Mark Uyeda and Hester Peirce. Peirce’s departure in November 2025 will leave only two commissioners, and no nominations for the three vacant seats have been announced.

  • Altcoin Founder Claims “We’ll Benefit the Most from This SEC Move” as Price Surges

    Altcoin Founder Claims “We’ll Benefit the Most from This SEC Move” as Price Surges

    Key Highlights

    • The SEC granted a temporary, conditional exemption for “Tokenized Securities Platforms” enabling on-chain trading of tokenized U.S. stocks under specific transparency, record-keeping, and security requirements.
    • Uniswap founder Hayden Adams emphasized SEC Commissioner Hester Peirce’s assessment that “truly decentralized systems operated by autonomous software” do not create the intermediary risks that securities regulation targets.
    • Adams stated the exemption creates a regulatory pathway for licensed pools on Uniswap v4 and announced plans to submit a formal comment letter to the SEC with suggestions for regulatory improvements.

    SEC Announces Innovation Exemption for Tokenized Securities Platforms

    On September 17, the U.S. Securities and Exchange Commission unveiled what it termed an “Innovation Exemption” — a temporary and conditional framework allowing platforms designated as “Tokenized Securities Platforms” to facilitate on-chain trading of tokenized U.S. equities. The exemption mandates that participating platforms satisfy specific requirements around transparency, record-keeping, trading volume thresholds, and technological security. SEC Chairman Paul Atkins framed the regulation as enabling tokenized stocks to be traded on-chain within permissioned environments, marking a notable step in the agency’s engagement with blockchain-based financial infrastructure.

    Commissioner Peirce’s Dissent Highlights Decentralized Systems

    While the official exemption drew attention, Uniswap founder Hayden Adams directed focus toward the assessment offered by SEC Commissioner Hester Peirce. Adams characterized Peirce’s view as the most significant development of the day for automated market makers (AMMs). Peirce’s assessment articulated that “truly decentralized systems operated by autonomous software” do not expose the underlying intermediary risks that securities regulation is designed to address. Adams argued this framing could be interpreted to mean that normal, permissionless use of the Uniswap protocol does not require an additional exemption, a distinction with profound implications for decentralized finance protocols operating without centralized intermediaries.

    Implications for Uniswap v4 and Licensed Pools

    Adams specifically highlighted the exemption’s relevance to licensed pools on Uniswap v4, the protocol’s latest iteration featuring a modular “hooks” architecture. He stated that this structure could create a pathway for compliant trading in the United States for assets and users subject to regulatory requirements. By enabling permissioned pools that adhere to the SEC’s newly outlined framework, Uniswap v4 may serve as a bridge between permissionless DeFi infrastructure and regulated traditional finance participants seeking on-chain execution with compliance guarantees.

    Uniswap to Submit Regulatory Recommendations

    Beyond analyzing the immediate ruling, Adams signaled proactive engagement with the regulatory process. He announced that the Uniswap team would submit a formal letter of opinion to the SEC containing suggestions for regulatory improvements. Adams framed the development as creating significant opportunities for the adoption of AMM technologies in traditional financial markets, suggesting that the intersection of decentralized exchange mechanics and regulatory clarity could accelerate institutional on-chain activity.

    Why This Matters

    The SEC’s Innovation Exemption represents one of the clearest regulatory signals to date that tokenized traditional assets have a defined, albeit conditional, path to on-chain trading. Commissioner Peirce’s concurrent articulation of a principle distinguishing “truly decentralized systems operated by autonomous software” from intermediated platforms provides a potential analytical framework for future enforcement and rulemaking. For Uniswap, the convergence of this exemption with the v4 architecture’s licensed pool capability positions the protocol as a potential primary venue where regulated and permissionless liquidity can coexist. Market participants should monitor the SEC’s formal rulemaking docket, Uniswap’s forthcoming comment letter, and the deployment of licensed hooks on v4 as leading indicators of how DeFi infrastructure integrates with U.S. securities law.

    Frequently Asked Questions

    What assets are eligible for trading under the SEC’s Innovation Exemption?
    The exemption applies to tokenized U.S. stocks traded on platforms that qualify as “Tokenized Securities Platforms” and meet the SEC’s specified transparency, record-keeping, volume, and security requirements.
    Does the exemption apply to Uniswap’s permissionless pools?
    According to Hayden Adams, Commissioner Peirce’s assessment suggests that “truly decentralized systems operated by autonomous software” do not create the intermediary risks targeted by securities regulation, which Adams argues could mean normal permissionless Uniswap use does not require this exemption.
    What are licensed pools on Uniswap v4?
    Licensed pools are a feature of Uniswap v4’s hooks architecture that allow pool creators to implement custom logic, including compliance controls such as KYC/AML checks and jurisdictional restrictions, enabling permissioned trading environments atop the permissionless protocol.
  • SEC’s Atkins Backs Clarity Act, Vows to Advance Crypto Rules Without It

    SEC’s Atkins Backs Clarity Act, Vows to Advance Crypto Rules Without It

    SEC Commissioner Hester Peirce outlined a three-part regulatory framework for digital assets during recent remarks, emphasizing the need for clarity as markets evolve. The proposals target capital formation, transfer agent modernization, and crypto custody rules for investment advisers.

    Digital Asset Clarity Act Would Reduce Regulatory Guesswork

    The first pillar centers on advancing the Digital Asset Clarity Act. If adopted, the framework would give entrepreneurs greater certainty to raise capital in the U.S. using digital assets rather than having to “guess what the law is as they go.” The legislation aims to define when a digital asset qualifies as a security, providing a clearer path for compliant fundraising.

    Transfer Agent Rules Overdue for Blockchain Integration

    The second initiative calls for an overhaul of transfer agent rules to include blockchains for digital ownership ledgers. Peirce noted the rules have not been seriously updated in roughly four decades and were built for paper stock certificates. Transfer agents are already adapting to a market that increasingly incorporates tokenized assets, making regulatory modernization essential.

    Crypto Custody Proposal for Advisers and Regulated Funds

    Additionally, Peirce said she has asked SEC staff to develop a proposal clarifying crypto custody for investment advisers and regulated funds. That proposal would seek to allow advisers, under certain conditions, to custody crypto themselves and to use state trust companies as custodians. Self-custody may be necessary because qualified third-party custodians do not yet exist for some assets, while state trust companies already provide a pathway that “works in practice.”

    Unified Regulatory Architecture

    Peirce described the three initiatives together as “three pillars of a single, rational, and comprehensive regulatory architecture.” She emphasized the urgency of action, stating, “The SEC should not be the last institution to notice that the world actually has changed.”

    The push for the Clarity Act vote comes as the bill faces an uphill battle, with several key disputes still unresolved ahead of Tuesday’s procedural vote.