The SEC Commissioner condemned the regulator for the actions against the Poloniex exchange and noted the opaque rules that American cryptocurrency companies must comply with.
United States Securities and Exchange Commission (SEC) Commissioner Hester Peirce, known for her open and friendly attitude towards the cryptocurrency industry, released a statement on the SEC website in which she expressed her opinion on the agency’s latest actions.
According to the SEC, the Poloniex exchange violated the securities law. Poloniex agreed with the submission to cease illegal actions and pay a $ 10 million fine. On the same day, Pierce strongly condemned the regulator’s actions in a public statement, highlighting the opaque regulatory framework that cryptocurrency firms in the United States must follow.
The Commissioner highlighted several regulatory issues, including how to determine if an asset is a security, and what licenses and exceptions are required for a cryptocurrency exchange to operate:
“Given how slow we are in determining how regulated entities can interact with cryptocurrency, market participants may be surprised to see that we are on the scene now. Our enforcement tools are sparkling, and we argue that Poloniex was not registered and did not operate under the exemption as it should. ”
Pearce added that if Poloniex tried to register as a stock exchange or alternative trading system (ATS) with the SEC, the firm “would probably still be waiting for permission … and still waiting … and more … “.
Esther Pierce recently warned about the dangers of “shadow centralization” in the Decentralized Finance (DeFi) sector.
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