SNEAK PEEK
- SEC Commissioner Hester Peirce criticizes the agency for its lack of guidance for crypto firms.
- Peirce claims the SEC’s focus on enforcement actions has eroded mutual trust.
- The commissioner’s dissenting voice highlights the need for a clear crypto regulatory framework.
In a recent development, Hester Peirce, a commissioner at the US Securities and Exchange Commission (SEC), has criticized the agency’s approach towards the crypto industry. According to a new post by Wired, Peirce disavowed the SEC’s tactics, stating that they have been driven by what she terms “jurisdictional maximalization.”
According to her, the agency’s launch cases have been aimed at expanding its mandate rather than making the crypto sector more compliant. Peirce’s comments have sparked a debate on the SEC’s role in regulating the crypto industry and its effectiveness in achieving its stated goals.
Peirce has been vocal in her dissent against the SEC’s proposed amendment to the definition of an exchange, which would increase the range of crypto activities under the agency’s oversight. According to Peirce, such actions have contributed to a “dysfunctional” relationship between the regulator and the industry.
The Commissioner claims that the SEC’s current approach is a mix of “regulation by enforcement” and “regulation by ambiguity,” where companies are left unaware of their compliance obligations until faced with a lawsuit. Peirce warns that this has eroded any mutual trust between the SEC and the crypto industry.
Peirce’s criticisms have highlighted the need for a clear regulatory framework for cryptocurrencies. Her stance has been supported by industry experts, who have long called for the SEC to provide greater clarity on its position regarding digital assets.
As the cryptocurrency industry grows, regulatory clarity remains a top concern for companies and investors. Peirce’s dissenting voice may bring attention to this issue and lead to greater collaboration between the SEC and the crypto industry.