The SEC Should Improve Efficiency and Clarity in Regulating Crypto, Says Commissioner Peirce
Republican Commissioner Hester Peirce believes that the Securities and Exchange Commission (SEC) needs to enhance its efficiency and transparency when it comes to regulating the cryptocurrency industry. She cited the handling of the SEC’s charges against crypto startup LBRY as an example of unclear decision-making. LBRY was charged with selling unregistered securities, and instead of settling, the company decided to litigate. The court ultimately ruled that LBRY’s token fell under regulatory oversight, resulting in a fine of over $100,000.
Peirce expressed her disappointment with the LBRY case during the Blockchain Association Policy Summit, referring to it as a “low point” for her as a commissioner. She highlighted that enforcement actions in the crypto space often seem arbitrary and lack a clear rationale.
According to Peirce, the SEC should prioritize addressing areas where there is “real harm” before focusing on registration through rulemaking. By doing so, the agency could allocate its resources more effectively and avoid inconsistent enforcement actions. Peirce emphasized that it would be more efficient for both regulators and market participants if they didn’t have to decipher the implications of enforcement actions.
In terms of regulatory authority over crypto, Peirce suggested that congressional involvement could be beneficial. While SEC Chair Gary Gensler has stated that regulation in this area is already clear, Peirce believes that lawmakers’ participation in allocating regulatory authority would be helpful.
Hot Take: SEC Must Enhance Efficiency and Clarity in Crypto Regulation
Commissioner Hester Peirce’s call for increased efficiency and clarity in crypto regulation by the Securities and Exchange Commission (SEC) is crucial for fostering a fair and transparent industry. The current lack of consistency and rationale in enforcement actions undermines the confidence of market participants. By prioritizing cases with real harm and focusing on registration through rulemaking, the SEC can allocate its resources more effectively. Congressional involvement in allocating regulatory authority would also provide valuable guidance.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats.