Commissioner Hester Peirce Criticizes SEC’s Handling of LBRY Case
Hester Peirce, a commissioner of the U.S. Securities and Exchange Commission (SEC) also known as “Crypto Mom,” has expressed her dissent regarding the SEC’s handling of the case against LBRY. The company had developed a decentralized publishing platform with its token. Peirce criticized the SEC for targeting LBRY despite the company already having a working product and taking a more cautious approach compared to other projects.
Peirce pointed out that LBRY had made disclosures to customers that were not considered fraudulent or misleading by the SEC. She questioned why the commission chose to pursue this particular case instead of going after outright frauds that did not comply with securities laws.
No Clear Path for Crypto Projects to Register with the SEC
Peirce further criticized the SEC, stating that there is currently no clear path for crypto projects to register their operations with the commission. She emphasized that despite the SEC’s claims, the application of securities laws to token projects remains unclear. Peirce highlighted that companies like LBRY have no way to register their functional token offerings.
Peirce’s statements echo concerns raised by executives such as Coinbase CEO Brian Armstrong and Ripple’s CEO Brad Garlinghouse, who have criticized the lack of regulatory clarity in the crypto space.
SEC President Claims Clear Path for Registration, But Controversy Surrounds Approvals
While SEC President Gary Gensler has stated that there is a clear path for crypto companies to register with the commission, controversy surrounds recent license approvals. Prometheum, a firm granted a special purpose broker-dealer license for digital assets, is currently under investigation by lawmakers who question the legitimacy of its approval.
Hot Take: SEC’s Approach to LBRY Raises Concerns About Regulatory Clarity
Commissioner Hester Peirce’s dissent regarding the SEC’s handling of the LBRY case highlights concerns about regulatory clarity in the cryptocurrency industry. Peirce questions why the SEC chose to target a company like LBRY that had made disclosures and had a functioning product, instead of pursuing outright frauds. Additionally, Peirce emphasizes the lack of a clear path for crypto projects to register with the SEC, echoing sentiments expressed by other industry executives.
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