'Crypto Mom' Hester Peirce: SEC hesitation has "stifled growth" of crypto

09 May, 2019
by David Robb
Regulation
'Crypto Mom' Hester Peirce: SEC hesitation has stifled growth of crypto

So-called 'Crypto Mom' Hester Peirce recently gave her thoughts on the way the SEC has dealt with crypto regulations, as reported by CoinDesk. Speaking at an event in Silicon Valley, the commissioner claimed that the SEC had stifled the growth of the sector.

According to Peirce, she knew that the SEC's regulatory efforts would slow the development of the crypto market. She admits, however, that she "was very wrong...in how it would do it". Peirce expected the SEC's hasty drawing up of new rules to spoil things for crypto, but it was in fact the commission's hestitation and the resulting regulatory uncertainty that has made things more difficult. 

She claims that the "enforcement actions we have taken to date in the crypto space have—for the most part—exhibited appropriate restraint. On the regulatory side, 'hasty' is not the word I would use to describe the SEC’s pace. It is not the SEC’s overzealous action that has stifled the crypto industry, but its unwillingness to take meaningful action at all".

Establishing new guidelines to determine whether particular digital tokens should be classified as securities or not is one of the most important aspects of crypto regulation for the SEC, and Peirce is keen that the commission gets them right. She said that U.S. securities markets "have historically been the envy of the world; I do not want heel-dragging by the SEC in crypto to mar that well-deserved reputation."

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