SEC Commissioner Esther Pearce again criticized the agency for its “anti-cryptocurrency” stance in relation to the regulation of the digital assets industry.
In his
speech At the Tech Live, hosted by the Wall Street Journal, US Securities and Exchange Commission Commissioner Hester Peirce rebuked SEC Chairman Gary Gensler for not partnering with cryptocurrency companies to develop cryptoasset regulation. Pearce said that the growth of decentralized finance and the expansion of the cryptocurrency industry are inevitable, so she invited the department to think over a scheme for interacting with cryptocurrency firms.
The sooner regulators realize the importance of cryptocurrencies and do not interfere with their development, the better it will be reflected in the financial markets, the commissioner said. Pearce criticized the SEC for its conservative approach to the latest technology. This is bad for startups and small businesses, as it is difficult for them to understand SEC requirements and comply with rules that are not yet clearly defined.
“For some reason, the regulators are very conservative. They think in this way: if we do not approve of a product, then there are no complaints against us, and if we allow it and something goes wrong, accusations will fall on us. This indecision is costing too much for small firms, ”Pearce said.
Esther Pierce is outraged that for about three years now she has been asking for a clear regulatory framework to control the activities of cryptocurrency firms, or at least clarify the current regulations. For example, the US Commodity Futures Trading Commission (CFTC) previously called ether a commodity, not a security. On the other hand, the SEC considers XRP to be a security and is in litigation with Ripple, which it accused of conducting an unregistered ICO last year.
“Uncertainty about the position of regulators is becoming a huge obstacle to the safe development of innovations and cryptocurrencies. I am frustrated by the fact that we are not using our powers as a regulator to create rules that cryptocurrency firms must abide by, ”said the SEC Commissioner.
Earlier, Pierce urged the SEC to expedite its decision to launch exchange-traded funds (ETFs) pegged to bitcoin and ether to keep pace with Canada and Brazil. Pearce said that under the leadership of Gensler, the SEC will become more friendly to cryptocurrencies, and this is partly true. This month, the agency approved an ETF on shares of companies investing in bitcoin, and also authorized the launch of the first tradable fund for bitcoin futures.
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