SEC rejects ball crypto regulation and there are long-term consequences, says commissioner – Regulation of Bitcoin news

SEC rejects ball crypto regulation and there are long-term consequences, says commissioner – Regulation of Bitcoin news

The commissioner of the American Securities and Exchange Commission (SEC) warned that the regulator of the securities market dropped the ball on the regulation of cryptocurrencies. “We do not allow innovation to develop and experimentation to take place in a healthy way, and there are long-term consequences of that failure,” the commissioner said.

The SEC commissioner warns of the ‘failure’ of crypto regulation

SEC Commissioner Hester Peirce expressed concern that the United States dropped the ball on cryptocurrency regulation in an interview with CNBC on the sidelines of this week’s DC Blockchain summit.

Peirce, who is also known in the crypto community as a “crypto mom” for her support of the industry, discussed the challenges in the crypto ecosystem from a regulatory standpoint. First, the commissioner mentioned fraud, stating that “there are many frauds in this area because it is a hot area at the moment.”

However, she emphasized that she is more worried that the SEC dropped the ball on crypto regulation. Peirce said:

The other thing that worries me is the way we somehow dropped the regulatory ball.

“We do not allow innovation to develop and experimentation to take place in a healthy way, and there are long-term consequences of that failure,” the commissioner warned.

The crypto market has suffered a huge loss in the last few weeks, losing about $ 500 billion since the beginning of the month.

The market crash was exacerbated by the collapse of the cryptocurrency terra (LUNA) and the algorithmic stabilcoin terrausd (UST). The two cryptocurrencies lost almost all of their value within days. The disaster led Congress to call for emergency regulation stable coins.

After the implosion of two cryptocurrencies, SEC President Gary Gensler warned that many crypto tokens will fail and investors will be hurt. He has repeatedly said that many coins listed on crypto exchanges are securities and should be registered with his agency. However, Gensler also stressed that the SEC does not have enough resources to adequately monitor financial markets, stating that the regulator is indeed “superpersonal”. He also said that they are crypto exchanges they often trade against their customers.

The SEC has been under Gensler so far focused on implementation. Since the Securities Supervision Organization launched a unit dedicated to the supervision of crypto assets in 2017, it has launched more than 80 coercive actions against crypto companies. The agency recently announced that it will soon twice as big crypto units of its Enforcement Department.

Peirce stressed the need for regulatory clarity by the SEC, adding that there is a lot of work to be done within the existing authorities. Stating that traditional financial institutions want to get involved in cryptocurrencies, she emphasized: “They need regulatory clarity from us to do that.”

The Commissioner gave the opinion:

We can go after fraud and we can play a more positive role on the innovation side, but we have to get there, we have to work… I have not seen so far that we are willing to do that job.

What do you think about the comments of SEC Commissioner Peirce? Let us know in the comments section below.

SEC rejects ball crypto regulation and there are long-term consequences, says commissioner – Regulation of Bitcoin news

Kevin Helms

A student of Austrian economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects and the crossroads between economics and cryptography.




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