# Our conversation with SEC Commissioner Hester Peirce
On Thursday, September 4, 2025, we were invited to meet with the **commissioner of the SEC**, Hester Peirce, to discuss how laws should be formed as we build new technology in the finance sector. It was a great discussion on the future ahead for products like Nook and how we can better serve the people of the U.S. - and beyond.
#### Our meeting with Commissioner Peirce
Peirce is one of the most important voices inside the the **Securities and Exchange Commission (SEC)**, a main federal agency responsible for regulating innovation in the financial services sector. As the United States, and other countries around the world, continue to think about how the law needs to evolve with new stablecoin products - Peirce hosted us to better understand: **where is the future of finance going**? And **how** can regulators **help the American consumer**?
It was a great discussion in which we covered a wide range of topics. However the three main points stuck out to me in particular from the conversation.
#### \[1] The SEC and federal regulators are here to learn
As we covered in last week's post, with Robinhood, Google and Stripe all building stablecoin infrastructure. The **rate of innovation is only getting faster**. New technologies and products like Nook are being created every day. Peirce made it very clear that they recognize this, and that innovation is moving faster than the U.S. government. But they are here to learn by reaching out to companies like us vs applying sweeping legislation and laws that might stifle innovation.
#### \[2] Writing rules and regulations is iterative
Based on the **GENIUS act** and other pieces of legislation **passed by the Senate in 2025**, platforms like Nook have been given the green light by regulators. And **additional laws or regulations will be iterative**. Peirce emphasized that writing legislation not only takes time but also collaboration.
It’s a process of learning, writing and revising. They invited us into the process and to come back and talk to their team more in depth about what we are working on. And that all laws and regulations that they do draft are part of that process of shaping the industry together.
#### \[3] The financial industry has a big opportunity ahead
**Big banks like Wells Fargo etc. often do not spend much time on creating new benefits for their customers**. They have over **$1.41 trillion dollars** in deposits and there are less than 5,000 banks left, **down 55%**, compared to 1990 when there were over 10,000 banks. So new competitors to the banking system like Nook, are welcomed. But we have to grow responsibly with the customer in mind.
#### Why is regulation important for Nook?
At Nook, we know that trust starts with the stability of the assets backing your savings. This is a partnership with regulators.
The rules and regulations for stablecoin legislation **are clear** after the passing of the **GENIUS Act** and the soon to be passed **Clarity Act**. But we always want to share how we remain closely in sync with regulators like Peirce and the enforcing agencies.
#### We only partner with stablecoin partners that meet the outlined in the GENIUS act
That’s why our primary stablecoin partner, **Circle** (issuer of USDC), has built its reserves in a way that aligns directly with the new **GENIUS Act framework**. **Every USDC is backed 1:1 by short-term U.S. Treasuries and cash held at major banks**, with independent third-party attestations published every month. For Nook savers, this means transparency you can verify. Your deposits are supported by safe, liquid assets and always redeemable for dollars.
Circle also leads the way on regulatory readiness. The company is **licensed in nearly every state, holds a New York BitLicense**. These steps put Circle right in line with the GENIUS Act’s vision: federal oversight for the largest issuers, state frameworks for smaller ones, all with strict consumer protections in place. Importantly, Circle structures its reserves so that if anything ever happened to the company, those assets would remain separate and prioritized for USDC holders.
By partnering with Circle, Nook is able to deliver high-yield savings built on the **safest, most transparent stablecoin** infrastructure **in the world**. As the GENIUS Act takes effect, Circle’s approach shows exactly how stablecoins can be responsibly managed.
#### We are based and incorporated in the United States
Nook is incorporated and operated in the United States, and we’re building our savings product on top of U.S. legal rails with U.S. counterparties. We share **Commissioner Hester Peirce’s** objective of bringing responsible crypto activity on-shore: subject to U.S. oversight, consumer-protection rules, and transparent disclosures rather than offshore ambiguity. Peirce has argued for clearer, innovation-friendly guardrails and pathways for compliant U.S. projects; the GENIUS Act delivers that for payments-stablecoins, and Nook is building within it by favoring regulated U.S. issuers, U.S. banking and payments partners, BSA/AML controls, and marketing that avoids any inference of government insurance.
#### The future ahead of Stablecoin Yield and Regulation
Having a direct connection to the Commissioner of the SEC is a great signal that **we can** **continue to innovate** as the financial sector continues to evolve.
There will definitely be key questions that arise with stablecoin and the yield they generate. And as they arise we will continue to share them here in the open. But by building bridges with the SEC and other regulatory partners, it's a good sign for the road ahead.
A special thank you again to the SEC for having us and Commissioner Hester Peirce.
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