SEC’s Hester Peirce: Context Matters in Determining Crypto Securities Transactions
U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce emphasized that whether a digital asset transaction qualifies as a securities transaction depends on the context of the sale rather than the asset itself.
Speaking at the Bitcoin 2025 conference in Las Vegas, Peirce — who also heads the SEC’s Crypto Task Force — said that while most cryptocurrencies are not securities, offering them in certain contexts could bring them under securities law.
“Most crypto assets as we see them today are probably not themselves securities,” Peirce told attendees. “That doesn’t mean that you can’t sell a token that is not itself a security in a transaction that is a securities transaction. That is where we really need to provide some guidance.”
She highlighted examples such as issuing tokens during an initial public offering (IPO) or tokenizing company shares, both of which would likely fall under securities regulations due to their structure and purpose.
SEC Acknowledges Evolving Landscape
Peirce added that more tokenized assets — such as stocks and bonds issued on blockchain networks — are expected to emerge, and these are more clearly securities by design. Her comments reflect a growing consensus that the SEC must provide clearer guidelines as crypto technologies advance and intersect with traditional finance.
The commissioner’s remarks come as U.S. lawmakers and financial regulators push to create a comprehensive regulatory framework for the digital asset sector to prevent innovation from moving offshore.
SEC Crypto Task Force Developing New Framework
The SEC’s Crypto Task Force, launched on January 21 — one day after President Donald Trump returned to office — has hosted a series of industry roundtables to gather input from stakeholders. Peirce’s comments suggest the agency is open to more nuanced regulation based on how assets are used, not just what they are.
Earlier in May, SEC Chair Paul Atkins told Congress that the agency is preparing to release its first detailed report on digital asset regulation “in the coming months.”
As digital assets continue to gain institutional traction, the SEC’s evolving approach — balancing innovation with investor protection — could have far-reaching implications for how tokens are issued, sold, and traded in the U.S. financial system.
