SEC Commissioner Hester Peirce has again made a call for regulatory certainty in the cryptocurrency industry so that DeFi projects can boldly experiment with new services.
“We need to provide regulatory certainty as well as freedom of experimentation so that DeFi can compete with the centralized financial sector in offering financial services to investors,” Pearce said during a speech at George Washington University School of Law.
Back in October last year, the SEC Commissioner talked about the potential of the DeFi industry, and it looks like her confidence has only grown. Pearce noted that the DeFi regulation “will be a good test of our ability to protect investors and markets, not the interests of existing players.”
“The events of recent weeks have led to dissatisfaction among market participants on Wall Street. Some even call for a complete ditch of the traditional financial system and use DeFi. It is a rapidly growing part of the cryptocurrency world working to create an alternative to centralized finance that is managed by smart contracts rather than middlemen. And while DeFi is still evolving, it promises the availability, transparency and predictability of the financial system, ”Pearce said.
She concluded her presentation by emphasizing that it is the responsibility of regulators to assess potential advantages and disadvantages, and to provide legal clarity. In doing so, the SEC should encourage experimentation and competition between DeFi and the centralized financial sector. Pearce also urged regulators to take an open approach to innovation and the digital economy.
Pierce’s comments on stock market events refer to the “pump” of shares in the GameStop chain of stores by users of the popular Internet forum Reddit, as a result of which institutional investors suffered significant losses. Against this backdrop, some trading platforms have restricted access to trading in GameStop stock, which has caused a flurry of criticism from users.
Former CEO of BitMEX exchange Arthur Hayes even urged traders to abandon securities trading on traditional financial platforms and switch to decentralized platforms.
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