SEC Warms to Crypto: Commissioners Call for Collaboration Over Crackdowns

Speaking at a closed-door crypto policy roundtable organized by the Managed Funds Association (MFA), Commissioners Hester Peirce and Mark Uyeda both acknowledged the need for better engagement with the industry and admitted the regulatory landscape for digital assets remains unclear.

“We’ve got to do better,” Peirce reportedly said during the session, according to participants who spoke on condition of anonymity. “We need to stop fighting in courtrooms and start working in meeting rooms.”

Friday’s roundtable brought together SEC officials, lawmakers, and representatives from major crypto firms, including Coinbase, Kraken, and a number of DeFi developers. Attendees emphasized the importance of establishing clear, workable guidelines that support innovation while ensuring investor protection.

“We’ve had enforcement actions without a rulebook,” one participant said. “That’s like getting fined for speeding without knowing the speed limit.”

The crypto industry has long criticized the SEC under Chair Gary Gensler for regulating through litigation, citing a lack of formal guidance on whether and when digital assets constitute securities. The agency has filed lawsuits against several major crypto firms, alleging unregistered securities offerings—a strategy that has triggered both legal battles and legislative scrutiny.

Commissioners Peirce and Uyeda, both Republicans on the five-member panel, have frequently dissented from the SEC’s crypto crackdowns. Their presence at the MFA roundtable signaled a willingness to find middle ground and echoed a broader call for formal rulemaking processes.

“We should not be regulating by enforcement,” Uyeda said, according to multiple sources. He emphasized the need to define key terms such as “investment contract” in the context of blockchain-based assets.

Peirce, who has earned the nickname “Crypto Mom” for her support of the sector, floated the idea of a regulatory “sandbox” to allow startups to test projects under limited oversight. “Innovation needs space to breathe,” she told attendees.

Notably absent from the event was SEC Chair Gary Gensler, whose more aggressive stance on crypto has put him at odds with the digital asset industry and even some lawmakers. However, his absence did not deter participants from pushing for a more constructive tone.

“Even if Gensler isn’t here, the presence of two commissioners shows the door isn’t completely closed,” said one legal advisor who attended.

On Capitol Hill, momentum for crypto legislation has been building. Lawmakers from both parties have introduced bills seeking to clarify the SEC’s role versus that of the Commodity Futures Trading Commission (CFTC), which many in the crypto industry view as more accommodating.

Friday’s roundtable adds fuel to the argument that a dual-agency or entirely new framework may be necessary. “The current structure isn’t built for decentralized systems,” said Kristin Smith, CEO of the Blockchain Association, in a post-event interview. “We need 21st-century regulation for 21st-century technology.”

While no immediate policy changes emerged from the event, participants expressed cautious optimism that the roundtable marked a turning point. The MFA said it would publish a summary of the discussion in the coming weeks and continue hosting dialogues between regulators and industry stakeholders.

“Constructive engagement is possible,” said one executive. “But now we need action, not just talk.”

For now, the crypto world will be watching whether the SEC’s expressions of openness will translate into substantive regulatory progress—or remain just lip service amid continued courtroom clashes.