SEC Chairman's Regulatory Agenda Does Not Include Clarity On Crypto, Says Hester Peirce

Hester Peirce, commissioner of the United States Securities and Exchange Commission, known to many in the space as Crypto Mom, opposes th...



Hester Peirce, commissioner of the United States Securities and Exchange Commission, known to many in the space as Crypto Mom, opposes the regulator’s agenda for not including clarification on digital assets .

In a joint statement on Monday, Peirce and SEC Commissioner Elad Roisman noted they were “disappointed” by President Gary Gensler’s regulatory program failure to include elements to help companies raise capital, strengthen investor protection, overturn recent rules adopted by the commission and provide clarification on cryptography. Gensler’s uncertain stance on digital assets may create problems for companies looking to operate in the space, according to both regulators.

“Rather than undertake the difficult task of formulating rules to allow investors and regulated entities to interact with digital assets, including digital asset securities, the Agenda – through its silence on crypto – signals that the market can expect continued questions around the application of our securities laws to this area of ​​growing investor interest, ”said Peirce and Roisman. “Such silence emboldens fraudsters and embarrasses conscientious participants who want to comply with the law. “

The pair added that the proposed regulatory framework defers changes related to audit trails of information about transactions – presumably including crypto – and the people behind the transactions. According to Peirce and Roisman, deferring action on these protections “leaves investor data vulnerable.”

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Gensler, who has chaired the SEC since April, has made numerous public statements advice to crypto companies to “come in and talk” about any concerns about token projects that might qualify as titles. Cointelegraph reported in August that Gensler hoped introduce crypto-related policy changes surrounding token offerings, decentralized finance, stablecoins, custody, exchange traded funds and lending platforms.

As the major regulator for financial products in the United States, the SEC has been blamed by many for hamper the launch of exchange traded funds, or ETF, linked to cryptocurrencies. Although the regulator has Recently Approved ETFs with Bitcoin Exposure (BTC) futures from investment managers ProShares and Valkyrie, he has yet to give the green light for another crypto ETF.