SEC Commissioner Calls for ‘Consistent Legal Framework’ for All Asset Classes, Including Crypto

A commissioner with the U.S. Securities and Exchange Commission (SEC) has called for “a coherent and accordant ineligible model that works crossed each plus classes,” including crypto assets. She warned that the SEC’s existent enforcement-centric attack would instrumentality 400 years to spell done each the crypto tokens that are allegedly securities.

SEC’s Commissioner connected Crypto Regulation

A commissioner with the U.S. Securities and Exchange Commission (SEC), Hester Peirce, talked astir crypto regularisation successful her code astatine the “Digital Assets astatine Duke” league connected Jan. 20.

Noting that the securities regulator has “pursued registration violations successful a seemingly random fashion, often years aft the archetypal offering,” the commissioner stressed:

We indispensable make a coherent and accordant ineligible model that works crossed each plus classes. Our imprecise exertion of the instrumentality has created arbitrary and destructive results for crypto projects and purchasers.

“When we importune connected applying the securities laws successful this manner, secondary purchasers of the token often are near holding a container of tokens that they cannot commercialized oregon usage due to the fact that the SEC requires peculiar handling accordant with the securities laws,” Peirce warned. “Many of these requirements are enforced nether a strict liability standard, truthful clarity is essential.”

The commissioner continued, “Why not acceptable distant a coherent ineligible model successful a rule?” elaborating:

After all, if we continued with our regulation-by-enforcement attack astatine our existent pace, we would attack 400 years earlier we got done the tokens that are allegedly securities.

“By contrast, an SEC regularisation would person universal—albeit not retroactive—coverage arsenic soon arsenic it took effect,” she noted.

Commissioner Peirce further explained: “A rational model should facilitate the compliance of bully religion crypto actors with our securities laws, which would escaped the SEC to absorption much of its resources connected the atrocious religion actors.”

However, she cautioned:

Crypto regularisation is not casual to bash well. If crypto institutions are treated similar regular depository institutions, requiring dense layers of superior and tons of ineligible staffing, crypto innovation is apt to dwindle.

This was not the archetypal clip Commissioner Peirce has raised concerns astir the mode the SEC has been regulating the crypto sector. She has repeatedly criticized the securities watchdog for taking an enforcement-centric approach to regulating the crypto space. She besides believes that the regulator should person already approved a spot bitcoin exchange-traded fund (ETF). In May past year, she warned that the SEC has dropped the ball connected crypto oversight, stating: “We’re not allowing innovation to make and experimentation to hap successful a steadfast way, and determination are semipermanent consequences of that failure.”

Commissioner Peirce is not the lone 1 who is acrophobic astir the SEC’s enforcement-centric approach. U.S. Congressman Tom Emmer (R-MN), for example, has repeatedly criticized SEC Chairman Gary Gensler. “Under Chair Gensler, the SEC has go a power-hungry regulator,” the lawmaker said successful July past year.

Do you hold with SEC Commissioner Hester Peirce? Let america cognize successful the comments conception below.

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