A U.S. Securities and Exchange Commission (SEC) commissioner has warned that the securities market regulator has abandoned crypto regulation. “We do not allow innovative development and experimentation to proceed in a healthy manner, and such failures have long-term consequences,” the commissioner said.
SEC Commissioner Warns of ‘Failure’ of Crypto Regulation
SEC Commissioner Hester Peirce expressed concerns about U.S. cryptocurrency regulation in an interview with CNBC on the sidelines of the DC Blockchain Summit this week.
Also known in the crypto community as “Crypto Mom” due to her support for the industry, Peirce discusses challenges in the crypto ecosystem from a regulatory perspective. First, the commissioner referred to fraud, saying “there’s a lot of fraud in this area because it’s a hot area right now.”
However, she stressed that she is more concerned that the SEC has abandoned crypto regulation. Pierce said:
Another thing that worries me is the way we’re giving up on policing the ball.
“We do not allow innovative development and experimentation to proceed in a healthy manner, and such failures have long-term consequences,” the commissioner warned.
The crypto market has suffered huge losses in recent weeks, losing around $500 billion since the beginning of the month.
The market downturn was exacerbated by the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST). Both cryptocurrencies lost almost all their value within a few days.The disaster prompted Congress call for urgent regulation stablecoins.
SEC Chairman Gary Gensler Warns After Both Cryptocurrencies Crash A lot of crypto tokens will fail Investors will be hurt. He has repeatedly stated that many coins listed on cryptocurrency exchanges are securities and should be registered with his institution. However, Gensler also stressed that the SEC does not have the resources to adequately regulate financial markets, saying the regulator is indeed “understaffed.”He also stated that cryptocurrency exchanges are Frequent transactions with clients.
To date, the SEC under Gensler law enforcement. Since the securities regulator created a unit dedicated to the regulation of crypto assets in 2017, it has taken more than 80 enforcement actions against crypto companies.The agency recently announced that it will twice the size The encryption arm of its law enforcement arm.
Peirce stressed the need for clear oversight by the SEC, adding that there is still a lot of work to be done within the existing authorities. Noting that traditional financial institutions want to get into crypto, she stressed: “They need clear regulation from us to do that.”
The Commissioner believes that:
We can fight fraud, we can play a more active role in innovation, but we have to do it, we have to get to work… So far, I haven’t seen us willing to do that work.
What do you think of SEC Commissioner Pierce’s comments? Let us know in the comments section below.
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