Hester Peirce, Commissioner of the US Securities and Exchange Commission (SEC) and better known by the affectionate nickname “Crypto Mom”, The regulator may get stuck if it just includes digital assets in its current regulatory framework.
In an interview with John Whelan, CEO of Banco Santander, for today’s online conference “Ethereum in the Enterprise – Asia Pacific” Peirce said the SEC could learn from other approaches to regulating cryptocurrencies, particularly citing Wyoming as an “extremely progressive” regulator.. The State Banking Board approved the statutes of cryptocurrency companies such as Avanti and Kraken in October.
In contrast, at the federal level, Peirce said cryptocurrency and blockchain companies could “spend a lot of money and a lot of time and a lot of pain” waiting for an SEC regulatory decision without getting the results they want. Peirce claimed that the Commission’s existing legal framework may not be able to create such an innovative space..
“I think we need new rules”said Peirce. “Our securities laws are designed to be flexible enough to stand the test of time, and I think that is largely the case.”
However, he added:
“I think there are some problems that cryptocurrencies pose that our existing securities laws cannot unambiguously resolve. I would like a little more innovation on the regulatory side. “
The SEC commissioner previously said the regulator was “very slow to provide guidance” despite a rapidly changing cryptocurrency landscape.. However, he encouraged companies to reach out to the commission, citing the SEC’s infrequent release of a non-trading letter for coin offers. The SEC has issued three such letters stating that it “does not recommend any enforcement action” against a platform that issues a digital currency.
Peirce began her second term as SEC commissioner in August and will remain in office until 2025.