Esther Pierce: “The SEC May Take A New Look at Cryptoasset Regulation Under New Administration”

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SEC Commissioner Esther Pearce spoke about the future of cryptocurrency regulation under the administration of the new US president, and announced her intention to strengthen the protection of financial privacy.

In an online discussion this week, US Securities and Exchange Commission (SEC) Commissioner Hester Peirce shared the regulator’s views on the regulatory approach to cryptocurrencies.

“We still don’t know what cryptocurrency will become,” she said, stressing the need for regulation that both stimulates the growth of nascent technologies and keeps criminals away from the industry.

The subject of the conversation was the issue of cryptocurrency regulation under the new US President Joe Biden, who will take office on January 20. Panellists discussed topics ranging from privacy issues to efforts to build bipartisan coalitions around cryptocurrency legislation.

The question of how the Biden administration will approach industry regulation has long been of interest to industry participants.

“We’ve seen quite a lot of institutional and retail interest in BTC and other cryptocurrencies throughout 2020,” Pearce said, suggesting that this would prompt the SEC to “take a fresh look” at cryptoasset regulation in the coming years.

Pearce also said that “the freedom to participate in financial transactions without supervision” will be an important part of her own approach to future legislation. However, other regulators hold the opposite point of view.

So, in mid-December, the Financial Crimes Enforcement Network (FinCEN) proposed to oblige banks and financial institutions to provide reports on transactions from any cryptocurrency wallets. Pearce acknowledged that “regulators tend to be pretty conservative when it comes to change.”

As a reminder, in December Esther Pearce announced the need to develop new rules adapted specifically for the cryptocurrency industry.

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