SEC Commissioner Hester Peirce Dissents Against Agency’s Actions
After the SEC won its case against LBRY, SEC Commissioner Hester Peirce expressed her dissent on the agency’s actions. She questioned whether the public was truly better off now that a “functioning blockchain with a real-world application running on top of it” had been taken down.
Criticizing the SEC’s Approach
Commissioner Peirce argued that the SEC could have focused on fraudulent crypto projects instead of targeting LBRY. She pointed out that there was no evidence of fraud in the LBRY case and accused the SEC of taking an excessively harsh approach. Despite LBRY’s offer to burn its tokens as assurance, the SEC sought $44 million in monetary remedies.
Securities Laws and Crypto
Peirce emphasized that securities laws regarding crypto were not clear. She stated that there was no path for companies like LBRY to register their functional token offerings. She believed that the time and resources spent on this case could have been used to develop a regulatory framework for companies like LBRY to follow.
A Disproportionate Response
Commissioner Peirce criticized the SEC’s “scorched earth” approach as being completely disproportionate to any harm investors may have faced. She argued that investors would have preferred for the company to continue existing and supporting the blockchain. Peirce expressed concern that the SEC’s actions would discourage experimentation with blockchain technology.
Quoting LBRY’s Tweet
Peirce quoted a tweet from LBRY, envisioning a future where Americans are jailed for using cryptocurrency instead of central bank digital currencies (CBDCs). She humorously stated that in 2028, she might be “tending bees” instead of writing dissents. Peirce acknowledged that she didn’t have all the answers to prevent similar cases in the future and welcomed suggestions from the public.
Hot Take: Commissioner Peirce Criticizes SEC’s Actions Against LBRY
SEC Commissioner Hester Peirce strongly disagrees with her agency’s actions against LBRY. She questions whether the public truly benefits from taking down a functioning blockchain. Peirce criticizes the SEC for its harsh approach, lack of clarity in securities laws regarding crypto, and disproportionate response. She believes the SEC’s actions discourage blockchain technology experimentation and dissent. Quoting a tweet from LBRY, she humorously envisions a future where people are jailed for using cryptocurrency instead of CBDCs. Peirce admits she doesn’t have all the answers but welcomes suggestions from the public to prevent similar cases in the future.
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