SEC Commissioner discusses her views on the current state of crypto
One of the five US Security and Exchange Commission (SEC) commissioners, Hester Peirce discussed her views on the state of crypto in a podcast.
KEY TAKEAWAYS
- SEC Commissioner Hester Peirce shared her views on the state of crypto
- While discussing she disagreed with SEC’s approach to dealing with crypto-assets.
Hester Peirce recently made an appearance on a bankless podcast. There she shared her views on the crypto market development and her thoughts about the relationship between the US regulator and the crypto industry.
Centralized crypto needs regulation
While addressing the relationship between the US regulators and the crypto industry Hester Peirce made some remarks in light of the recent events. She emphasized that centralized cryptocurrency needs to be regulated. She stated that if it comes to appointing a regulator. SEC will be the perfect agency to oversee the crypto trading platforms that issue tokens.
Peirce added that she personally feels comfortable with the decentralized entities in the crypto industry. Because she considers them open-source and transparent, which may solve many problems that the regulation aims to address. However, for centralized crypto, she thinks they need regulation.
Regarding the shutdown of Kraken’s staking services in the US, Peirce interestingly disagreed with the US-SEC approach. This is so because she believes instead of blocking something the regulators must work and come up with a solution to regulate it. She believes that when it comes to innovative financial products regulators must be flexible and open-minded. Instead of imposing blanket regulations that may not always work.
Peirce suggested that the way the SEC came up with the regulation for asset-backed securities, there must also be a regulatory -framework to deal with crypto-assets. Furthermore, according to her the SEC’s method of enforcement and not guidance has not been effective in the past either.
She has proposed that SEC must develop specific regulations for the crypto industry like others. She clarified that enforcement alone cannot be a good approach. Rather a guidance-based approach would be more helpful for the people.