SEC Commissioner Criticizes Crackdown on Crypto Companies
According to Republican Securities and Exchange Commissioner (SEC) Hester Peirce, the SEC’s recent crackdown on US crypto companies lacks any logical consistency. Peirce expressed her concerns about the SEC’s enforcement actions during the recent Blockchain Association Summit, highlighting the LBRY case as particularly troubling. LBRY was charged by the SEC in March 2021 for offering an unregistered security, and a judge ruled in favor of the SEC. As a result, LBRY was ordered to pay a fine of approximately $111,000. Due to the financial burden, LBRY shut down in October 2023.
Some overdue thoughts on our case against LBRY: https://t.co/wLsG4Xr7wz
— Hester Peirce (@HesterPeirce) October 27, 2023
Hester Peirce Calls for SEC to Address “Real Harm”
In an interview with crypto news outlet The Block, Peirce expressed her belief that the SEC should first focus on areas of the crypto industry that can potentially cause significant harm before creating registration rules for crypto entities. She stated that pursuing individual cases requires significant resources but lacking consistency in pursuing similar cases can lead to questions and criticism. Peirce also urged the US Congress to take regulatory authority over crypto assets, emphasizing that legislative involvement could be beneficial.
This year, the SEC has filed lawsuits against prominent crypto firms such as Coinbase, Binance, and recently Kraken.
Hot Take: SEC Commissioner Voices Concerns About Inconsistent Enforcement Against Crypto Companies
SEC Commissioner Hester Peirce has criticized the SEC’s handling of enforcement actions against US crypto companies, citing a lack of consistent rationale. Peirce highlighted the LBRY case as an example, where the SEC charged the company for offering an unregistered security. The resulting fine led to LBRY’s closure. Peirce called for the SEC to prioritize areas of genuine harm in the crypto industry and create clearer registration rules for crypto entities. Furthermore, she urged the US Congress to assume regulatory authority over crypto assets. Peirce’s remarks reflect growing concerns within the industry about the SEC’s approach to crypto regulation.
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