When it comes to regulating cryptocurrencies, the SEC currently operates in “executive-only mode.”
Speaking at ETHDenver, an annual gathering of cryptocurrency developers, investors and marketers focusing on Ethereum, the second-largest blockchain after Bitcoin, Peirce, known for her cryptocurrency-friendliness among the five SEC commissioners, expressed her concerns.
Peirce admitted that industry participants are constantly worried about avoiding litigation, addressing a packed main stage.
She said: “If we had clearer rules, we could focus on building.”
Peirce maintains that excessive regulation limits innovation.
Peirce has openly expressed her dissatisfaction with the SEC’s tendency to rate cryptocurrencies as an asset class, stressing that her opinions are her own.
She noted that excessive regulation hinders innovation and called for the adoption of greater cooperation and understanding.
“I really think we can get to a better place in the United States, it’s going to take a lot longer than you’d probably all like, but I really think we can get there if we work together and think about what would make sense.”
Since joining the SEC in 2018. Peirce, a lawyer by profession, has been supportive of the cryptocurrency industry, even despite the skepticism of some of her colleagues, including SEC Chairman Gary Gensler.
She said it is important to avoid excessive regulatory restrictions: “If we all wanted to wrap ourselves in bubble wrap, it would be a much less interesting country.”
SEC launches campaign against cryptocurrency companies.
Due to claims that crypto companies such as Coinbase, Ripple and Kraken offered illegal and unregulated investments to people in the United States, the Securities Exchange Commission has been in constant litigation with them.
The basis for these claims is the idea that cryptocurrencies should be treated in the same way as traditional investments, such as stocks.
When it comes to cryptocurrencies, both the accused companies and Commissioner Peirce say the SEC and lawmakers need to introduce clearer rules and greater regulatory transparency.
The SEC’s recent setback against Grayscale, the issuer of theGrayscale Bitcoin Trust (GBTC), stemmed from the SEC’s attempt to convert the bitcoin trust into an exchange-traded fund(ETF). As a result of the court defeat, the SEC had to approve several bitcoin ETFs in January.
Peirce expressed her surprise that such a situation required a court ruling, saying: “It’s unusual to me that a court was neededfor this.” She stressed the importance of further developing cryptocurrency regulation, despite the SEC’s current enforcement-oriented policy.
To ensure transparency in the industry, she mentioned the token safe har bor law and hersafe harbor proposal.
Billionaire investor Mike Novogratz says many of the lawsuits filed under current SEC Chairman Gary Gensler will be dismissed, according to reports. The cryptocurrency industry veteran said that many of the lawsuits brought under Gensler’s tenure are likely to be dropped, regardless of his political affiliation.
