Known affectionately as 'Crypto Mom' by the cryptocurrency community, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently expressed her dissatisfaction with the SEC's approach to the regulation of cryptocurrency.

In her speech at the annual SEC Speaks Conference on April 2, Peirce criticised the SEC's guidance on crypto custody, urging the agency for greater openness and engagement with the crypto sector instead of resorting to threats of enforcement.

Peirce highlighted her concerns with the Staff Accounting Bulletin 121 (SAB 121), issued by the SEC in March 2022, which sets forth the accounting standards for entities wishing to hold cryptocurrencies on behalf of clients.

She argued that this particular regulation significantly hinders banks' ability to provide crypto custody services, which she believes is detrimental to the industry's growth and innovation.

Echoing the sentiments of the crypto community, Peirce called for the SEC to foster a more positive and collaborative environment for cryptocurrency firms.