SEC Commissioner Concerned Crypto Industry Hindered by Regulatory Delays

The regulator of the United States of America and popularly known as the “crypto mother” Hester Peirce recently expressed her fears that the crypto industry was being hindered by the Securities and Exchange Commission [SEC]. Hester Peirce spoke regarding this issue on the 9^th of May at the Securities Enforcement Forum which was held in East Palo Alto, California.

Looking
at the speedy development of the cryptocurrency industry, Peirce is worried
that the hesitance of SEC to give a clear guidance would slow down its growth. Peirce
said, “The SEC, as a regulator, has to provide industry players with clear
guidance on how to comply with the law and order, which the agency has not
yet done.” She further talked about the agency’s “Jackson Pollock approach to
splashing lots of factors on the canvas without any clear message leaves something
to be desired.”

Peirce said, “We
should not be trying to guide innovation, but we also should recognize that we
cannot stop it and embrace the potential for positive change that innovation
offers. Our silence is likely to simply push this innovation and any attendant
economic growth into other jurisdictions that have done their work and provided
clear guidelines for the market participants to follow.” She further
added, “The U.S. securities markets have historically been the envy of the world;
I do not want heel-dragging by the SEC in crypto to mar that well-deserved
reputation.”

In March, Hester Peirce was
completely in favour of the self-regulation for crypto asset markets whenever
possible. This discussion was during a public discussion with the former
Commodity Futures Trading Commission chairman, Mr. Gary Gensler at the MIT
Bitcoin Expo this year. Hester Peirce recommended for a better regulatory touch
when possible, nonetheless vowing that security offerings must abide with the
registration requirements of the SEC. Hester Peirce has completely supported
the current efforts put in by major crypto trading platforms so as to register
with the agency as exchanges or as alternative trading venues so as to cooperatively
list security tokens.

In February this year, Peirce had
put forward a plan which consisted of a lengthy process of establishing
crypto asset regulation in the U.S. which was basically to be beneficial for the
industry and allow greater freedom for the industry.

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