Regulatory U-turn: "Crypto Mom" apologizes to SEC for past stance, America enters a new era of encryption regulation.

The U.S. Securities and Exchange Commission (SEC) has undergone a dramatic shift in its regulatory stance towards crypto assets. Known as the “crypto mom,” Commissioner Hester Peirce delivered a compelling speech at the Coin Center dinner on September 25, 2025, marking not only the dawn of a new era but also an unprecedented apology, urging the industry to “act swiftly” in seizing the opportunity for regulatory clarity.

Peirce told the audience: “I apologize that during most of my time as an SEC commissioner, I failed to persuade my government colleagues to give you an opportunity.” She encouraged attendees to take advantage of the current period of regulatory clarity, “to build great things that enhance the safety, security, happiness, and prosperity of your family, friends, neighbors, and country.”

Policy Changes Driven by Leadership Changes

This regulatory shift began with significant changes in the SEC leadership. Former Chairman Gary Gensler led aggressive enforcement actions against major crypto companies from 2021 to 2025. His “regulation by enforcement” approach created tremendous uncertainty in the market and forced many crypto businesses to relocate overseas.

On January 20, 2025, Gensler stepped down and Paul Atkins took over as SEC chairman, bringing a radically different regulatory approach to digital assets. The new leadership quickly took action:

· Crypto Task Force: Acting Chair Mark Uyeda established the Crypto Task Force on January 21, 2025, led by Hester Peirce. The task force aims to develop clear rules for Crypto Assets rather than relying on enforcement.

· Project Crypto: Atkins announced the launch of “Project Crypto” on July 31, 2025, a comprehensive initiative aimed at “realizing the on-chain transformation of the U.S. financial markets.” The project embodies the President's vision of making the U.S. the “world's crypto capital.”

· Atkins clearly stated that “most crypto assets are not securities” and criticized the previous regulatory provisions that “hindered the growth and innovation of the domestic market.”

Canceling Law Enforcement and Clarifying Regulation

The SEC's transformation is not just verbal; it is quickly reflected in actual actions.

· Dismissal of Lawsuit: In February 2025, the SEC agreed to withdraw the lawsuit against Coinbase, subsequently retracting several other cases and establishing new guidelines for digital assets.

· Regulatory Objective: The encryption task force is committed to “drawing clear regulatory boundaries, appropriately distinguishing between securities and non-securities, creating a tailored disclosure framework, and providing viable registration pathways for crypto assets and market intermediaries.”

· Specific guidance: In August 2025, the SEC issued guidance on liquid staking, confirming that certain staking activities do not fall under securities under federal law, eliminating years of uncertainty in this area.

Industry Response and Future Outlook

After years of regulatory uncertainty, the crypto industry generally welcomes these changes, and many companies that had previously moved overseas are considering returning to the United States. A clearer regulatory environment has also attracted institutional investors who had previously avoided Crypto Assets due to ambiguous rules.

Peirce humorously mentioned in her speech that she had considered beekeeping after leaving office, but she made it clear that clearer rules do not mean no rules. The SEC will still crack down on fraud and protect investors. The difference now is that legitimate Crypto Assets businesses have a clear compliance path instead of facing enforcement due to ambiguous violations.

The encryption task force will continue to develop comprehensive regulatory guidelines to encourage innovation while maintaining necessary investor protections. This new regulatory approach in the United States aims to compete with countries that have established crypto-friendly regulations and to establish the United States' leadership position in the global digital asset innovation space.

Conclusion

Commissioner Hester Peirce's apology and call for accelerated development mark the end of the SEC's era of aggressive enforcement and the beginning of a new chapter of collaborative regulation. The crypto industry now has a historic opportunity to demonstrate that clear regulation can support both innovation and investor protection. How businesses seize this opportunity will determine the future landscape of Crypto Assets in the United States.