SEC’s Hester Peirce says the Binance case was dropped to shift from enforcement to clear rulemaking, aiming for a collaborative crypto regulatory approach.
Just days after the U.S. Securities and Exchange Commission (SEC) dismissed its major lawsuit against Binance, the world’s largest cryptocurrency exchange, SEC Commissioner Hester Peirce provided insights into the decision while emphasizing that it does not grant crypto businesses a license to defraud investors.
In a CNBC interview, Peirce discussed various issues concerning the crypto industry and the SEC’s role, stressing the urgent need for a clear regulatory framework. Appointed as an SEC commissioner under President Trump’s administration in 2025, Peirce reiterated that her top priority is fostering clarity between the SEC and U.S. crypto businesses.
Addressing the dismissal of the Binance case, which originated in June 2023 with allegations of customer asset diversion, inflated trading volumes, and unregistered access for U.S. investors, Peirce explained that the SEC needed to reassess its regulatory approach.
“We’re evaluating these enforcement cases based on their specific facts and circumstances. As I’ve said before, we lacked a clear set of rules, and there were many questions about how these crypto activities aligned with existing securities laws. We’re stepping back to use our regulatory tools to establish and enforce those rules,” Peirce stated.
Peirce cautioned, however, that the Binance case should not be seen as a precedent allowing crypto businesses to evade accountability.
“It’s critical to emphasize that this isn’t a free pass to exploit people under the guise of crypto. While the SEC may not have jurisdiction over everything, other federal agencies are ready to act against those who defraud in the name of crypto,” she warned.
During the interview, Peirce highlighted her commitment to establishing a clear cryptocurrency regulatory structure at the SEC.
“For years, I’ve criticized the SEC’s failure to provide clarity proactively. Now, we’re finally in a position to make progress, collaborating with people inside and outside the commission who share the goal of delivering clarity. It’s been incredibly rewarding,” Peirce said.
She also emphasized her focus on bringing stakeholders together to find common ground for crypto rulemaking.
“People are demanding clarity, but there are differing opinions on achieving it. We need to navigate these perspectives and integrate crypto into the existing legal framework, just as we do with other securities issues,” Peirce added.
