U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce has emphasized the need for regulatory clarity and innovation, making it clear that such factors foster a favorable environment for the development of cryptocurrencies.
Perth roadmap
In a recent conversation with CNBC, Pierce criticized the lack of sufficient regulation of Bitcoin (BTC) and other cryptocurrencies in the United States, arguing that this failure stifles innovation while allowing fraud to flourish. He pointed out that it had become. Watch the video below.
Peirce also emphasizes the importance of allowing innovation and responsible experimentation to flourish in the crypto industry, believing that a favorable regulatory environment is essential for healthy development and long-term success.
Additionally, she called for more clarity from Congress on the SEC's role in regulating digital assets, saying that clear guidance from lawmakers would encourage a more structured regulatory framework for traditional securities and digital products. He suggested that it would help define boundaries.
In addition, he is seeking a balance between regulations that foster innovation by pro-crypto senators such as Cynthia Lummis (R-Wyo.) and Kirsten Gillibrand (D-N.Y.). He also mentioned efforts to introduce a comprehensive regulatory framework for the virtual currency industry. and much-needed clarity for market participants.
Peirce also noted the evolving nature of the SEC's role in regulating cryptocurrencies, emphasizing the need for the SEC to adapt to changes in the industry and work towards a stronger regulatory framework that addresses new challenges. did.
Her insights highlight the importance of effective regulation in shaping the future of cryptocurrencies and balancing investor protection with fostering innovation in this rapidly evolving sector.
Peirce criticizes the SEC
Last year, Peirce expressed opposition to the SEC's proposals regarding the storage of cryptocurrencies.
The proposal aims to expand the scope of custody requirements to cover crypto assets, potentially reducing the number of eligible crypto custodians. Peirce believes the proposal is overly restrictive and could hinder investors' access to cryptocurrencies.
She criticized the SEC's regulatory approach, accusing it of trying to assert control over cryptocurrencies without proper jurisdiction.
The proposal received mixed reactions, with some commissioners supporting it and others, including Peirce, opposing it. A 60-day public comment period is in place for interested parties to share their thoughts and suggestions.
At the Duke conference on January 20, 2023, Peirce addressed the aftermath of the 2022 bear market, which saw the demise of several large crypto companies and significant layoffs across the sector. Peirce highlighted the early stages of blockchain technology and argued that innovative technology needs time to develop and mature.
Last October, Peirce also expressed concerns about the SEC's enforcement action against blockchain company LBRY.
Peirce disagreed with the SEC's complaint, pointing to the lack of evidence of fraud and pointing out LBRY's cautious approach to digital assets compared to other crypto projects. She criticized the SEC's aggressive stance, particularly the hefty $44 million fine it imposed, and suggested that these resources could have been better used to create a regulatory framework for companies like LBRY. did.
She argued that this would allow market forces to decide LBRY's fate. SEC enforcement action ultimately forced LBRY to shut down, and Peirce questioned whether the commission's focus on enforcement would stifle innovation in blockchain technology.
Peirce highlighted the uncertainty surrounding the future of cryptocurrencies, stating that even prominent figures in the field cannot accurately predict the trajectory of cryptocurrencies. She emphasized the vital role industry builders play in driving industry development, contrasting them with regulators like me who lack technical acumen and sit on the sidelines.
