SEC Commissioner Claps Back at Colleagues Over Fine on DeFi Protocol
Hester Peirce, a commissioner with the U.S. Securities and Exchange Commission (SEC), criticized her colleagues for imposing a $1.7 million fine on decentralized finance (DeFi) protocol BarnBridge DAO. Peirce expressed her disagreement with the SEC’s decision to fine BarnBridge DAO’s founders, Tyler Ward and Troy Murray.
BarnBridge DAO Settles Charges for Selling SMART Yield Bonds
BarnBridge DAO and its founders reached a settlement with the SEC after being charged with selling structured crypto asset securities called SMART Yield bonds. As part of the settlement, BarnBridge DAO agreed to disgorge approximately $1.5 million in proceeds, while Ward and Murray agreed to pay civil penalties of $125,000 each.
SEC Director Highlights Importance of Securities Laws in Crypto Space
Gurbir Grewal, the director of the SEC, emphasized that using blockchain technology for selling unregistered structured finance products to retail investors violates securities laws. He stated that the case serves as a reminder that these laws apply to all participants in the capital markets, regardless of their incorporation or decentralization claims.
Hester Peirce’s Criticism of the SEC’s Decision
Hester Peirce expressed her dissent against the SEC’s decision to fine Ward and Murray. While she did not write a formal dissent yet, she voted against the action. Peirce has been vocal about her criticism of the SEC’s approach to cryptocurrency regulation in the past.
SEC Maintains Current Regulatory Framework for Crypto Asset Securities
The SEC maintains that its existing securities framework adequately governs crypto asset securities and has denied additional petitions for rulemaking. SEC Chair Gary Gensler has emphasized the need to address fraudulent activities and money laundering in the crypto industry.
Hot Take: SEC Commissioner Peirce Challenges Fine on DeFi Protocol
SEC Commissioner Hester Peirce’s criticism of the $1.7 million fine imposed on BarnBridge DAO highlights the ongoing debate surrounding regulatory actions in the crypto space. Peirce’s dissent raises concerns about the SEC’s legal reasoning and its impact on the uncertainty faced by crypto projects in the United States. As the SEC continues to navigate the regulation of cryptocurrencies, it remains crucial to strike a balance between investor protection and fostering innovation in this rapidly evolving industry.
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