SEC Commissioner accepts that crypto regulation is being mishandled and that it might have long-term consequences on the industry. This is a massive statement as crypto regulation is one of those topics that can make or break the industry. The SEC commissioner also said that the US is not allowing innovation and experimentation to happen in a healthy way. Her views show that we could see some positive things happen in the regulatory scenario in the future.
SEC Commissioner accepts that crypto regulation is being mishandled
Hester Pierce, the SEC Commissioner, expressed her concerns regarding the current crypto regulations in an interview with CNBC. Hester has always been a supporter of crypto and has also been given the title of “crypto mom” for the same. In the interview, she pointed out that there is a lot of fraud happening in the crypto space as it is the “hot area” in the present. However, what’s more concerning is how the SEC is mishandling crypto regulation.
The problem with poor handling of regulation is the barrier it produces in the development and experimentation of new ideas and blockchain tech. Hester also said that it would have long-term consequences and nothing concerns her more than the current regulatory landscape of crypto.
The problem with the SEC
While the SEC often talks about the need for regulations in the crypto industry, there is hardly any clarity. Gary Gensler, the chairperson of the SEC, has been enforcement centric, with the SEC bringing more than 80 enforcement actions against crypto companies since 2017. The only one that blew up was the Ripple lawsuit. And it’s not that they are stopping here; the enforcement unit will be doubled very soon, said the SEC.
Therefore, Hester Pierce stressed the need for more clarity, so crypto companies know how to operate. Without clarity, it’s like targeting companies without telling them what’s right and wrong. Finally, she said, “We can go after fraud, and we can play a more positive role on the innovation side, but we have to get to it, we’ve got to get working … I haven’t seen us willing to do that work so far.”
What are your thoughts as SEC Commissioner accepts that they mishandled crypto regulation? And do you think this will change things? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: JPMorgan forecasts increased blockchain use in finance.
