- There is discontent among the crypto companies regarding the SEC’s indecisiveness.
- The Commission is still using age-old regulations to fit a new asset class such as cryptocurrencies.
Speaking at the Bakkt Digital Asset Conference, the US Securities and Exchange (SEC) Commissioner, Hester Peirce, stated that the crypto space needs to have some breathing space for innovation. Peirce, affectionately known as “crypto mom,” called on regulators to allow for digital and crypto innovation. Peirce said:
“We need to allow people that are interested in this space [crypto] to be involved with it in a way that is within the regulated framework. Understanding that investors have to make their own decisions, we can’t make those decisions for them.”
There had already been several instances of discontent among the crypto companies regarding the SEC’s indecisiveness surround crypto regulations. Several platforms have geofenced US traders and Circle moved the Poloniex crypto exchange offshore.
Peirce feels that the main issue is that the Commission is still using age-old regulations to fit a new asset class such as cryptocurrencies:
“It is very natural for regulators to be conservative because if we make a mistake then people are going to come blame us and I know if people lose money, they always come blame the regulator.”
Peirce feels that regulators must create a positive environment for growth and leave product testing to the market. She believes that the solution lies in regulators having divisions dedicated to balancing compliance and forming positive relationships with cryptocurrency projects.