Episode #513: Interview with SEC Commissioner Hester M. Peirce

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SHOW SUMMARY: In this insightful episode of The Soul of Enterprise, Ron and Ed are joined by SEC Commissioner Hester M. Peirce, famously dubbed “CryptoMom” for her forward-thinking views on cryptocurrency and blockchain regulation. They’ll dive into her perspectives on a range of pivotal topics currently reshaping the financial landscape including PCAOB (Public Company Accounting Oversight Board), particularly its oversight roles and evolving challenges in today’s regulatory environment, ESG (Environmental, Social, and Governance) reporting in financial markets and, of course, Bitcoin and other cryptocurrencies, with Commissioner Peirce offering her thoughts on how the regulatory framework should evolve to encourage innovation while protecting investors. Join Ron and Ed for this fascinating and timely discussion with one of the SEC’s most outspoken and influential commissioners.

SHOW NOTES

Segment one

  • As with many career paths, her role at the SEC was not necessarily intentional. Commissioner Peirce has a degree in economics and a Yale Law School degree.

  • “Do you think CPAs should have a monopoly on audit?” - I can’t do Commissioner Peirce’s answer justice in 280 characters. It’s at the start of the show today and will be available in about 1 hour on all of the major podcast platforms.

  • “One of the reasons people come here to raise capital is because they know that they can trust the financial statements of the companies they're investing in” —Commissioner Peirce

  • From Commissioner Peirce: “We are Not the Securities and Environment Commission - At Least Not Yet” https://www.sec.gov/newsroom/speeches-statements/peirce-climate-disclosure-20220321 

Segment two

  • The history of the Securities and Exchange Commission dates back to the Wall Street crash of 1929. If you’ve not previously read the background, here is a starting point: https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission  

  • This is a great principle identified by Commissioner Peirce during our conversation: “The basic point that we need to remember as a regulator is that we have a job to do. And we have to prove our cases. […] And that's a good thing for administrative agencies to remember.”

  • “We want to keep as dynamic of a competitive playing field as we can. […] And so we really need to fight to keep those barriers to entry low.” —Commissioner Peirce

Segment three

  • “Our capital markets work so well in this country, and one of the things that makes me sad is that we're not seeing more Americans participate in those markets, either as investors or as founders of companies.” —Commissioner Peirce

  • Regarding private equity: “We want to make sure capital is flowing into every corner of our economy. And one of the ways that capital comes in is through private equity. […] I think it's very healthy to have a dynamic market” —Commissioner Peirce

  • Confused about the SEC? This is helpful from Commissioner Peirce: “We are a civil agency. We can't put anyone in prison. […] but it's the Department of Justice that will put people in prison if that's if that is going to happen.”

Segment four

  • A great listener question from Joe Woodard today, “Are there plans for the US to have its own digital regulator?” There’s more to the question and a rather thorough answer from Commissioner Peirce in segment four of the show.

  • A big THANK YOU to Commissioner Peirce for joining us today. The podcast will be available in about an hour and the show notes will be published on Monday at TheSoulofEnterprise.com.

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