In a lecture by the fireplace on July 7th, courtesy of Unitize, Commissioner Hester Peirce of the Securities and Exchange Commission continued to work for regulatory clarity on cryptocurrencies to open capital markets for innovation.
Innovation and regulation
“I believe in the power of our capital markets to change people’s lives.”Peirce said. “I wanted to make sure that our regulatory structure was flexible enough to take innovations into account.” He noted that the size of the US economy makes its regulations crucial for global fundraising:
“The race down should keep us busy. However, this is another reason for a jurisdiction like the United States to try to develop a viable framework that enables people to use our market. “
Peirce continued to advocate the role of the U.S. government in determining traffic regulations, but also downplayed public sector innovations themselves:
“Remember that innovation generally comes from the government sector. We need to create a framework that allows people who spend a lot of time thinking about new ideas to continue to spend time thinking about those ideas, and not a lot of time to ensure compliance. “
Limitations on SEC’s International Jurisdiction
Peirce also spoke on the issue of SEC jurisdiction at the international level. As trading in digital assets is largely limitless, the role of the SEC was controversial, as was the case with Telegram.
“It is certainly a difficult area and it is a difficult area even without blockchain,” said Peirce. “Aside from figuring out where to go to court […] I ask the question ‘Is it a good use of our resources?’ “
How exactly the SEC determines which projects to pursue remains an enigmatic question, although Peirce asked industry players to pick bad actors for the Commission instead of waiting for their investigators to find them.
Safe harbor proposal
Peirce’s proposed safe haven for token networking projects has attracted a lot of attention in the cryptocurrency space. In response to a question to answer, he rejected the idea that the measure “would trigger another boom in 2017 ICOs.” She compared the situation at the time with the current COVID 19 scams and said:
“If you have something like cryptocurrencies that gets a lot of media attention, there is a group of people who say, ‘Oh that’s perfect, I’ll take advantage of it as long as I can.'”