Commissioner Hester Peirce Departs SEC
On Friday, October 2, Commissioner Hester Peirce stepped away from her service on the Securities and Exchange Commission (SEC) after serving for more than eight years as a commissioner.
Commissioner Peirce was nominated by President Donald Trump in 2017, confirmed by the U.S. Senate in December 2017, and sworn into the Commission on January 11, 2018. She had previously held attorney positions at the SEC including as a staff attorney in the Division of Investment Management from 2000 to 2004 and then as counsel to Commissioner Paul Atkins from 2004 to 2008. After her time at the SEC, Commissioner Peirce worked on the Senate Committee on Banking, Housing, and Urban Affairs focusing on financial regulatory reform after the 2008 financial crisis and the regulatory implementation of the Dodd–Frank Act.
While at the Commission, Commissioner Peirce led efforts to create a regulatory framework around digital assets including serving as the head of the SEC’s crypto task force. SEC Chair Paul Atkins and Commissioner Mark Uyeda noted in a joint statement, “Her courage and conviction set the course that we are on today toward a rational, workable framework for digital assets—and the work that we carry forward will bear the mark of her leadership for years to come.”
Commissioner Peirce’s departure leaves two members remaining on the five-person Commission. A recent final rule put forth by the Commission amends the quorum rule stating that one member would constitute a quorum for a particular matter in case a Commissioner would be required to recuse themselves.
Nominations to the SEC rest squarely with the White House, although typically the President will work with the leadership of the opposite party to find a preferential nominee to pair with a member of the President’s political party. As of October 2, the Trump Administration has not put forth nominees to fill any of the three vacancies on the Commission. The nomination process includes a confirmation hearing in the Senate Banking Committee and a Committee vote on the nominee(s) prior to a full vote by the U.S. Senate. With the end of the 119th Congress quickly approaching, it is unlikely the Senate will have time to process nominees by the end of the year.
Click here to read Chair Paul Atkins and Commissioner Mark Uyeda’s statement on Commissioner Peirce’s departure.
Click here to read the text of the final rule amending Commission quorum requirements.