Hester Peirce Urges SEC to Engage with Crypto Industry
The US Securities and Exchange Commission (SEC) needs to work with crypto companies to create a “smart structure” for industry regulation, Commissioner Hester Peirce has told The Wall Street Journal.
She has proposed to the Commission to develop a system of interaction with players in the decentralized industry, taking into account its inevitable growth. According to her, the sooner regulators realize the importance of cryptos, the more the country’s financial markets will benefit. She said:
“I think it’s safe to assume that the crypto industry will grow in size. And what we can do now to invest in building a sane structure, I think it will pay off in the future.”
The SEC Commissioner has noted the conservative and cautious approach of the regulator negatively affects startups and small businesses. Small, innovative businesses find themselves in a time-consuming and expensive process of harmonizing their products and services. She has added:
“Regulators are usually very conservative for the following reason: if we don’t approve of something, we will not be blamed; if we approve and something goes wrong, we will be made guilty. But this fluctuation is really costly for small companies.”
The commissioner has earlier urged DeFi projects to apply to the SEC themselves so as not to violate securities laws. Prior to that, she argued at the federal level, blockchain startups will have to “spend a lot of money, time and experience grief,” in the end, without getting the desired result from the regulator.