# Hester Peirce Leaves SEC With Developer Protection Still Unfinished By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/25589 Published: 2026-09-30T01:53:42.000Z Updated: 2026-09-30T01:53:42.000Z Section: Regulation > The commissioner will depart Oct. 2 after nearly nine years, with financial privacy and workable crypto rules also unresolved. Hester Peirce will leave the Securities and Exchange Commission on Oct. 2 with legal protection for crypto developers and financial privacy among the policy issues she considers unfinished. Peirce, who has served at the SEC for nearly nine years, said U.S. regulators took too long to establish workable cryptocurrency rules. She argued that prolonged enforcement disputes consumed resources that could have supported protections for investors and developers. Peirce pointed to the SEC’s recent move toward rulemaking, including its crypto asset regulation work, a proposed five-year innovation exemption and joint staff guidance with the Commodity Futures Trading Commission. She said the agency should continue using its existing authority while Congress considers broader legislation. Developer protection was the crypto-related issue Peirce most wanted addressed before her departure. Her position is that writing software should not automatically make a developer liable when another person later misuses the tool. Peirce said excessive enforcement risk could discourage developers from writing code in the United States and weaken the country’s technology competition. She distinguished between creating a tool and the conduct of people who use it. Financial privacy was her other major concern. Peirce said the United States relies too heavily on financial information to investigate crimes, including offenses that do not involve money laundering. She argued that privacy tools can give ordinary people an alternative to comprehensive financial monitoring and should not be viewed solely as instruments for criminals. Peirce also said decentralization should not provide a blanket exemption from regulation. Projects that use intermediaries should face rules comparable to those governing other intermediaries because intermediaries can steal funds, act negligently or be hacked. Transactions that connect users directly to protocols through smart contracts may require a different regulatory approach, she said. The distinction is between an intermediary managing activity and users interacting directly with a protocol. Peirce remains hopeful that the Clarity Act will pass despite its stalled progress in the Senate. Until Congress acts, she said the SEC should use its current authority to create workable rules. She also argued that regulations are more likely to endure when businesses use them to build products that people adopt and value. Peirce’s departure will leave the SEC with Chairman Paul S. Atkins and Commissioner Mark T. Uyeda. The commission can continue operating with two members under its quorum rule, although disagreements could affect its ability to act. [Peirce’s resignation will leave the SEC with two commissioners](). Peirce plans to join Regent University School of Law as an associate professor in November, where she will teach securities law and writing. ## Links in this article - [Peirce’s resignation will leave the SEC with two commissioners](https://www.tokenpost.com/news/regulation/24281)