SEC’s ‘Crypto Mom’ Has Long-Shot Plan to Free Coins From Rules

The U.S. Securities and Exchange Commission’s loudest crypto advocate wants to let firms sell digital tokens without facing tough rules, a plan that’s unlikely to gain traction under the regulator’s current leadership.

The proposal issued Thursday by Hester Peirce, a Republican commissioner whose ardent backing of tokens has earned her the nickname “Crypto Mom,” would let coins trade for three years before most securities rules kick in. Exchanges and brokers would also get broad exemptions from regulations that underpin trading in stocks and other securities.

The plan puts Peirce at odds with SEC Chairman Jay Clayton, who ...